BUSINESS BEFORE QUESTIONS

Death of a Member

Mr Speaker: I regret to have to inform the House of the death of Alan Keen, Member for Feltham and Heston. For a number of years, Alan was the chairman of the all-party group on football, and before entering this House in 1992 he was for 18 years a scout for Middlesbrough football club. I am sure that Members from all parts of the House will join me in mourning the loss of a colleague and in extending our sympathy to his wife, Ann, and to his family and friends.

ORAL ANSWERS TO QUESTIONS

DEFENCE

The Secretary of State was asked—

Chief Coroner

Jessica Morden: What recent discussions he has had with ministerial colleagues on the creation of a post of chief coroner to oversee the inquest system in relation to deaths of armed forces personnel.

Andrew Robathan: With your permission, Mr Speaker, I should like to pay tribute to the late Private Matthew Thornton, who was killed in Afghanistan last Wednesday, from 4th Battalion The Yorkshire Regiment. He was a brave young man, serving his country, and I am sure that the whole House will wish to send its condolences and sympathy to his family.
	My right hon. Friend the Secretary of State has had no recent discussions with ministerial colleagues on the creation of a chief coroner’s post. The post is entirely a matter for the Ministry of Justice, although we have of course provided it with every assistance regarding the impact of the issue on military bereaved families, and we have engaged with the Ministry of Justice and with the Cabinet Office on the matter.

Jessica Morden: I should like to associate myself with the Minister’s opening remarks and with yours, Mr Speaker.
	The Royal British Legion thanked hon. Members from all parties for their cross-party support when the post of chief coroner was agreed just two years ago. Does the Minister agree that the issue should unite, not divide, this House, and that appointing a chief coroner in line with the revised proposals from the Royal British Legion and Inquest would send a wonderful message to service families at this particularly special time?

Andrew Robathan: I am afraid that I do not entirely agree. The important thing is the results that bereaved families receive at inquests, with which there have been problems in the past, and that is why the Ministry of Defence is, for instance, laying on specific events and continuing familiarisation with military inquests for coroners. We are also ensuring that they are properly trained with regard to bereaved families. People seem to have become hung up on the office of a chief coroner, but it is a Ministry of Justice matter, as I have said. What is important is that bereaved families receive an excellent service from coroners, and we are working very hard to ensure that that happens.

Andrew Murrison: To what extent does my right hon. Friend believe that the undoubted success in years gone by of the Wiltshire coroner, David Masters, and the Oxfordshire coroner, Andrew Walker, in improving the welfare and safety of troops has been down to their independence and to the fact that they have not had a potentially bureaucratic official standing over them?

Andrew Robathan: My hon. and gallant Friend makes a very interesting point, and again the issue is that we do not have a bureaucratic official standing over coroners. Inquests in the past, as the Opposition know, were not always as sympathetic towards military families as they might have been, and indeed they were not particularly good with the bereaved, so we are allowing the Lord Chief Justice to set mandatory training requirements for coroners and their officers, including training in respect of military inquests, and we think that that is the right way forward.

Gemma Doyle: Last month I asked the former Secretary of State whether he had reviewed the Royal British Legion’s proposals to deliver a reformed coronial system at significantly lower cost than the Government estimate. He did not answer the question. May I once again give the Minister, under the direction of a new Secretary of State, the opportunity to put on the record his views about scrapping the office of chief coroner? Will the Minister support the Royal British Legion’s campaign?

Andrew Robathan: I think that I am still a member of the Royal British Legion; I certainly have been, and I think that I paid my subscription this year.
	I am a great supporter of the Legion. It is a fantastic organisation with fantastic people, but that does not mean that it is right about everything, and on this campaign it has rather overstated its case. It said in its briefing, which I have with me, that when asked in the street two thirds of people thought that a chief coroner was essential, but I ask all Members, “How many of
	their constituents do they think have heard of the chief coroner?” The answer is not two thirds of the population, I can promise you that much.

Libya (Aircraft Carrier Capability)

Mary Macleod: What assessment he has made of the potential effects on operations in Libya of the unavailability of an aircraft carrier.

Penny Mordaunt: What assessment he has made of the potential effects on operations in Libya of the unavailability of an aircraft carrier.

Philip Hammond: Thanks to our overseas basing rights, the unavailability of a UK aircraft carrier had no significant effect on the UK’s participation in military operations over Libya. That was clearly demonstrated by the outstanding performance of our armed forces over and off the coast of Libya, and by the civilian and military staffs that supported them.
	Difficult decisions had to be made by my predecessor, the right hon. Member for North Somerset (Dr Fox), to whom I pay tribute, in order to deal with the black hole that we inherited from the previous Government. The decisions made in relation to carrier capability were painful, but they were the right ones in Britain’s long-term interests.

Mary Macleod: On my visits to RAF bases as part of the armed forces parliamentary scheme, air service personnel have raised concerns about the lack of availability of an aircraft carrier. Does my right hon. Friend agree that the British contribution to the no-fly zone in Libya has demonstrated that we can still project air power effectively, despite having to accept a break in our carrier strike capability?

Philip Hammond: My hon. Friend is absolutely right. The performance of British forces in Operation Ellamy precisely demonstrated that we retain such a capability and, indeed, that the aircraft deployed were capable of carrying weapons such as Storm Shadow and the dual-mode Brimstone, which allowed us to deliver a precision response in Libya. That greatly reduced collateral damage and civilian casualties.

Penny Mordaunt: Does my right hon. Friend agree that carrier strike force is a fundamental capability that we must regenerate as it will provide future Governments with both a powerful deterrent and the flexibility to respond to any situation in the most efficient and effective way?

Philip Hammond: As my hon. Friend suggests, the decision to regenerate the carrier capability at the end of the decade will give the United Kingdom a formidable capability in addition to the other capabilities it currently has to project force in areas of the world where basing and overflight rights may not be available. That will be a very welcome and important addition to our overall capability.

Thomas Docherty: The Secretary of State will know that Rosyth in my constituency does the refitting for the current carriers and that it is expected to do the refitting for future carriers that may be used in Libya-style operations. Will he confirm that, if there was a separate Scotland, the Ministry of Defence would have to look again at the long-term refitting options for our aircraft carriers?

Philip Hammond: I was not quite sure where that was going. The hon. Gentleman is of course right: it is unlikely Her Majesty’s forces would wish to use facilities in a fully independent Scotland in the way they would wish to use them within a United Kingdom.

Ian Lucas: Military action in Libya was, of course, supported in a non-partisan manner right across the House, but there will have been concern about the fact that, over the weekend, there were reports of military incidents in Libya. Will the Secretary of State give us an indication of the scale and extent of those incidents?

Philip Hammond: I cannot give the hon. Gentleman a detailed report on the weekend’s news stories, but I can say that having provided the cover that allowed the Libyan people to liberate themselves from a brutal dictatorship that has tyrannised them for the best part of four decades, it is very much in our interests and it is our moral responsibility to help them to make the best of the opportunity they have created. We will be watching very carefully as the situation develops. I know that my right hon. Friend the Foreign Secretary will be keeping a very close eye on the situation, with a view to assisting in any way we can to ensure a satisfactory long-term outcome for the people of Libya.

Julian Lewis: Does my right hon. Friend appreciate the difference—the important distinction—between mounting a no-fly zone and mounting long-range bombing raids in active intervention in a civil war? The latter is what we did in the Libya campaign, and no one would have doubted we could do that from land bases. However, does he not appreciate that a no-fly zone, which involves lengthy routine patrols and the suppression of air defences over a long period, would have been far better mounted from aircraft carriers? It is very important that we do not draw the wrong conclusions from the slightly triumphalist tone that both he and the Prime Minister have adopted in this matter.

Philip Hammond: I hesitate to disagree with my hon. Friend because I know he is very knowledgeable about these matters and I am still a fair way down a steep learning curve. However, I have to say to him that, in the early phases of the Libya campaign, Typhoon operations were mounted in support of the no-fly zone with a view to potentially having to engage in air-to-air operations. From the briefing I have had, my understanding is that it is perfectly possible to mount such an operation from a base that is the distance that Gioia del Colle was from Libyan airspace. Clearly, my hon. Friend is right: if we were seeking to mount an air exclusion operation in a location that was much further away from friendly bases, there would be greater difficulties.

Denis MacShane: As we have a base in Gibraltar, the use of a NATO base in southern Italy, and Cyprus, of course we can handle Libya from fixed bases. If we have a crisis anywhere else, such as a new Sierra Leone or a new Indonesia, where Royal Navy aircraft carriers went down to protect British forces, we would not be able to do that. Will the Secretary of State simply say that for the next 10 years we are no longer a maritime power in terms of air projection?

Philip Hammond: The right hon. Gentleman is overstating the case. The Government have been very clear that taking the tough decisions that have had to be taken to clear up the fantasy defence procurement programme we were left will leave us with some limitations in capability in the short to medium term. That is to be regretted, but it was necessary to put our defences on a stable and secure basis in the long term.

Terms of Business Agreement

Oliver Colvile: What the timetable is for the next terms of business agreement.

Peter Luff: The terms of business agreements are unique to the maritime sector and reflect our collaborative work with industry to transform the surface ship build and support, and submarine support, areas. The Department has separate TOBAs with BAE Systems Surface Ships and Babcock Marine, both of which are performing well and currently delivering savings in excess of their targeted benefits. These are 15-year agreements and we have not decided whether or how they will be replaced.

Oliver Colvile: I presume that, under those conditions, the Secretary of State has not had an opportunity to speak to any of the defence industries.

Peter Luff: We have not yet had any discussions with industry about how these arrangements will be carried forward in future—in some 14 years’ time. However, the TOBAs are performing very well and delivering savings in excess of their expected benefits. I promise my hon. Friend that we will talk very carefully to all those involved, including Plymouth city council and him, about any future arrangements when the time comes, but that is not quite yet, I fear.

EU Operational Headquarters

Stephen Hammond: If he will make it his policy to oppose the creation of an EU operational headquarters.

Jason McCartney: If he will make it his policy to oppose the creation of an EU operational headquarters.

Philip Hammond: It is the policy of this Government that NATO remain the cornerstone of UK defence. We see no justification whatsoever for a permanent EU military operational headquarters, and we will continue to oppose it. We have been clear that the establishment of a permanent
	operational headquarters would be a duplication of existing capability provided by NATO, would permanently dissociate the EU from NATO, and would be an unnecessary and unjustified use of resources.

Stephen Hammond: The lesson from recent military operations is that our operations with joint and existing allies have enabled military objectives to be achieved. The Secretary of State is clearly right that the proposal to create an EU headquarters would be a duplication, but would it not also curtail the involvement of some of our existing allies in military objectives that we may wish to undertake?

Philip Hammond: My hon. Friend is exactly right. It would duplicate and undermine arrangements we have in place that have been demonstrated to be perfectly adequate.

Jason McCartney: Does my right hon. Friend agree that spending money that the EU does not have on these headquarters is an absurd waste that would also cause confusion in the military chain of command in terms of duplication of effort?

Philip Hammond: Again, my hon. Friend is absolutely right. This is something that we do not need and cannot afford, and that would be damaging to our overall military capability.

Wayne David: The Anglo-French defence accord has been a success, but let us not forget that it was largely negotiated under the previous Government. May I ask this Government whether other agreements are being discussed with other member states of the European Union?

Philip Hammond: On Wednesday I am going to meet my Nordic and Baltic counterparts, and I have already had discussions with my Italian counterpart. It will be the Government’s policy to seek bilateral arrangements with other European allies where it is appropriate and in the interests of both parties to collaborate.

Russell Brown: I realise that the Under-Secretary of State for Defence, the hon. Member for Aldershot (Mr Howarth), who is responsible for NATO matters, is not here, but I am sure that the Secretary of State can respond. I agree with response he gave to the hon. Member for Wimbledon (Stephen Hammond). The Secretary of State is aware that Holland has withdrawn its main battle tank fleet and that Denmark is cutting its navy and ground-based air defences. These are just two examples of defence cuts among our European allies. As a nation, we are part of a European collective, but will he detail what work he and his ministerial colleagues are undertaking to ensure that NATO maintains a coherent capability?

Philip Hammond: I thank the hon. Gentleman for reiterating that there is cross-party support for resisting the temptation or blandishments for an EU operational headquarters. On ensuring that the European part of NATO remains effective, I again pay tribute to my predecessor, who never tired of exhorting our NATO allies to do their bit to maintain NATO effectiveness. I shall certainly continue in his footsteps.

Piracy

Mel Stride: What steps the Royal Navy is taking to tackle piracy off the horn of Africa.

Jim Cunningham: What role he expects UK armed forces to play in the protection of naval vessels against piracy.

Nick Harvey: The UK takes seriously efforts to tackle piracy off the horn of Africa and makes a direct contribution to a number of international efforts to counter piracy. We provide the operational headquarters and operational commander to the EU’s Operation Atalanta, we provide the deputy commander and HMS Somerset to the US-led combined maritime forces operation, and RFA Fort Victoria is currently under the command of NATO’s Operation Ocean Shield. Successful naval efforts must be complemented by proactive measures by commercial shippers.

Mel Stride: I welcome the Prime Minister’s commitment to ensuring that our commercial vessels can carry armed guards. Will my right hon. Friend reassure the House that that will in no way diminish the assets of the Royal Navy that are applied to tracking down those involved in piracy?

Nick Harvey: Yes, I can certainly assure my hon. Friend that this move is in no way intended to be a substitute for action by the Royal Navy; it is an additional measure. No matter what degree of resource navies from around the world put into the counter-piracy effort, it would not be possible for there always to be a naval presence on hand when a ship is attacked. No ships that have had any sort of security or that have followed best practice have been pirated.

Jim Cunningham: Following the point made by the hon. Member for Central Devon (Mel Stride), has the Minister had any discussions with the Secretary of State for Transport on the arming of commercial vessels? Will he tell us a little more about that, because it should not be a substitute for the duties of the British Navy?

Nick Harvey: I assure the hon. Gentleman that there has been a lot of discussion between the Home Office, the Department for Transport, the Ministry of Defence and the Foreign Office. Companies can apply for authorisation to carry firearms on ships. The Home Office will shortly issue guidance. Types of weapons will be considered on a case-by-case basis, but they will have to be appropriate and proportionate. Vessel owners will have a responsibility to ensure that guidance is followed, and necessary safeguards will have to be implemented.

Stephen Gilbert: When were the rules of engagement for royal naval ships off the horn of Africa last reviewed, and when will they next be reviewed? Can we ensure that we are not tying the arms of our armed forces personnel behind their backs when they are fighting piracy?

Nick Harvey: I assure my hon. Friend that the rules of engagement are kept permanently under review. Having looked closely at this issue, I am confident that we are not in any sense causing our people to fight with their hands tied behind their backs. The rules of engagement are, in my view, entirely appropriate to the task that they are being asked to perform.

Kevan Jones: The hon. Member for Central Devon (Mel Stride) said that the Prime Minister stated two weeks ago that there would be draft regulations on proposals for arming British merchant-registered ships. Will the Minister confirm what the legal status of those individuals will be, what the rules of engagement will be and, more important, how they will interface with UK personnel who are already deployed off the horn of Africa?

Nick Harvey: I say again that the details of how this policy will work are a matter for the Home Office. It will shortly issue guidance that will cover some of the points that the hon. Gentleman has raised. The Home Office has taken a view on the legality of the policy and it is satisfied that it is legal within existing legislation. On the interface with the armed forces, the armed guards who might be carried on ships—that is a matter for the owners to decide—are there in a preventive capacity. The Royal Navy and other navies will continue to patrol the entire area. The focus of the military effort is to deter and disrupt. As I said a moment ago, it would not be possible, no matter how much resource navies were to deploy, always to have somebody there in a preventive capacity. All ships that have taken the necessary precautions have successfully prevented themselves from being pirated.

Bob Stewart: To follow up the question on rules of engagement, will the Minister ensure that ours are as robust as possible and allow people defending ships to engage the enemy, or the pirates, at the maximum distance possible, to give those ships more time to take evasive action?

Nick Harvey: I say again that I am perfectly satisfied that the rules of engagement provide the armed forces with as much flexibility as they need to deal effectively with the situations that we expect them to find. I have to say that the UK has been pressing international allies for a bolder set of tactics, and we continue to press them to agree to that.

Afghanistan

William Bain: What recent assessment he has made of the security situation in Afghanistan.

Philip Hammond: I have just returned from my first visit to Afghanistan as Secretary of State for Defence. The visit allowed me to see at first hand the fantastic job that our armed forces are doing on behalf of our country, and the progress that they are making both in reversing the momentum of the insurgency and in training the Afghan security forces to defend their own country. I assess that the security situation in central Helmand has improved,
	and that good progress is being made in both the number and capability of the Afghan national security forces.

William Bain: Given this morning’s disturbing report that the Taliban are attempting to procure the security arrangements for the forthcoming Loya Jirga, what assistance will the international security assistance force be able to provide to the Afghan security forces to ensure that those participating in that important event can do so free from attack and intimidation by the Taliban?

Philip Hammond: The Loya Jirga will take place in Kabul, and of course ISAF has considerable resources deployed there in support of the Afghan security forces. Also, many ISAF contributing nations have special forces operating in Afghanistan, working in collaboration with the Afghan special forces and special police. All those arrangements will help to ensure the security of the Loya Jirga.

Nicholas Soames: Will my right hon. Friend pay an especially warm tribute to the soldiers of the British Army, and those in other parts of the services, who are contributing so much to the training of Afghan forces? Has he decided in which particular areas we will specialise in training Afghans after 2015?

Philip Hammond: I am happy to join my right hon. Friend in paying tribute to British servicemen and women for their work in training and mentoring Afghan national security forces on the job. Looking forward, the Prime Minister has made a commitment that Britain will take the lead role in the Afghan national officer training academy, which will be established just outside Kabul and will train the bulk of officer recruits to the Afghan national security forces.

Bob Ainsworth: The progress at the operational level in central Helmand that the Secretary of State reports has been achieved by the bravery of troops, yes, but also by the fact that in the past year or so they have had sufficient troop density in the area of operations to carry out an effective counter-insurgency operation. Is he now taking decisions that will effectively widen the area of responsibility, but with the same number of troops? That will surely have an impact on force density, which will potentially undermine their ability to succeed in the way they have in the past couple of years.

Philip Hammond: The simple answer to the right hon. Gentleman is no. I understand very well the concern that he expresses. He is referring, I think, to stories about the level and speed of US Marine Corps withdrawal from central Helmand, and indeed from the wider Helmand area. We are very clear that it is the increased force density that has secured the success of the British mission, and we have no intention of allowing that force density to be diluted in a way that damages our future prospects of success.

James Arbuthnot: Over recent years the Afghan national police have been regarded as a threat by the local population second only to the Taliban. Can my right hon. Friend say whether
	significant progress has been made in bringing the quality of the police up to that of the Afghan national army?

Philip Hammond: I believe that progress has been made. The composition of the Afghan national police is different from that of the Afghan national army in terms of the distribution of locally raised forces. There is a greater affinity between ANP forces and local people than between the army and local people, but there is still further work to do, and I fully recognise what my right hon. Friend says.

Jim Murphy: We remain committed to the Afghan mission, and we now want to see military might matched by substantial political progress. The Secretary of State will know that reservists will play a bigger role in Afghanistan and beyond, which may require additional mandatory training. At a time when many reservists have lost their full-time jobs, the benefits system might be unintentionally penalising them and hindering their freedom to take on extra reservist training or allowances. It would be a disgrace if a single reservist lost a penny in benefits because of their service. Will the Secretary of State undertake a wider piece of work with the rest of Government and conduct an urgent review to ensure that our welfare state does not punish a single reservist?

Philip Hammond: I thank the right hon. Gentleman for again reasserting the cross-party support for the Afghan campaign, and he is right that reservists are playing an important part in it. Sadly, one of those killed in action most recently was a reservist serving his country.
	My hon. Friend the Minister for the Armed Forces tells me that the problem the right hon. Gentleman raises is one that we are acutely alert to and aware of. There is work being done across Government to look at the problem and ensure that the concerns that he has raised are dealt with.

War Memorials

Stephen Metcalfe: What steps his Department is taking to prevent the desecration of war memorials.

Andrew Robathan: War memorials provide a lasting and poignant reminder of all those who have served and died in the service of our country. Most right hon. and hon. Members will have attended a war memorial yesterday to pay their respects to the fallen, both in the first and second world wars and subsequently. It is shocking that memorials are being violated and vandalised in the manner that we have all read about. I support any plan to protect memorials, and I know that the Home Office and local authorities are committed to dealing with the problem.

Stephen Metcalfe: At this solemn time of year, when we remember those who fell to protect our freedoms, there is a small, despicable group of people who go round stealing metal from war memorials. What action are my right hon. Friend and his colleagues across Government taking to bring the full force of the law to bear on those individuals?

Andrew Robathan: For myself—I should say that I am not sure that this is Government policy—if they were caught, I would ensure that they received exemplary sentences, but that is a matter for my colleagues in the Ministry of Justice. In the Ministry of Defence, the sponsored cadet forces are being encouraged to participate in project In Memoriam 2014. The project involves locating and logging the thousands of war memorials across the United Kingdom and marking them with SmartWater, a commercial product that should enable the metal components of war memorials to be forensically traced if they are stolen.

David Wright: The desecration of war memorials is an appalling crime, condemned by Members in all parts of the House. Would the Minister be willing to meet representatives from SmartWater, which is based in my constituency? It is doing a tremendous job protecting metal on war memorials, as part of its wider social obligation to our communities. Would he be willing to meet SmartWater representatives to see what more we can do to protect memorials? All parts of the House would support such initiatives.

Andrew Robathan: I would be very happy to hear their submission. I should point out that the something like 100,000 marvellous war memorials in this country are not the responsibility of the Ministry of Defence. The War Memorials Trust is doing excellent work on this, but if the hon. Gentleman writes to me, we shall see whether we can have a meeting, perhaps with one or two of the people responsible for the matter.

Warrior Armoured Fighting Vehicle

Jack Lopresti: What assessment he has made of the potential effects on (a) the Army and (b) UK industry of the capability sustainment programme for the Warrior armoured fighting vehicle.

Peter Luff: The £1 billion upgrade to the Warrior armoured fighting vehicle is an important step towards meeting the requirements for Future Force 2020. Warrior will remain the backbone of the infantry for the next 30 years. The upgrade represents a step change in capability, ensuring that our forces are equipped to counter the threats of the future. UK industry will benefit from the creation and sustainment of some 600 British jobs within prime contractor Lockheed Martin UK and its supply chain, sustaining both skills and capability within the UK’s armoured vehicle sector.

Jack Lopresti: I would like to thank my hon. Friend for his answer and to welcome the announced upgrade that will provide our forces with state-of-the-art firepower for the next 25 or 30 years, but will he also ensure that our troops have the kit they need when they need it to do their job as effectively and as safely as possible?

Peter Luff: I am certainly happy to give my hon. Friend that reassurance. I pay tribute to his constituents for playing their part in ensuring that that is achieved both at Thales, which is making the battle group thermal imager for the upgrade and at Defence Equipment and
	Support itself. I met many staff at Ampthill a week or so ago to celebrate the great success of the Warrior upgrade programme.

Libya

Andrew Selous: What recent estimate he has made of the cost to the public purse of the UK’s operations in Libya.

Philip Hammond: Our estimate on 12 October was that the net additional cost of operations in Libya would be £160 million. Our estimate at the same date of the cost of replenishing munitions used in Libya was £140 million. That estimate assumed that operations would continue until the end of December. We are currently calculating a new estimate based on the actual end of operations on 31 October, and I expect to make a further statement in early December. I expect the new estimate to be lower than the one previously given.

Andrew Selous: Given Libya’s vast oil wealth, does the Secretary of State think it might be appropriate in due course for Libya to make some form of compensatory payment to the United Kingdom for those costs incurred?

Philip Hammond: The UK’s motivation in intervening and playing a leading role in the Libya campaign was not based on an expectation of financial reimbursement; it was to prevent a humanitarian disaster and to protect the vital interests of this country. The Libyan situation, as hon. Members have already pointed out, remains fragile and our first priority is to assist the Libyan people and the Libyan Government in stabilising the situation. Seeking financial reimbursement is not a current priority.

Afghanistan

Margot James: What recent assessment he has made of the adequacy of equipment supplied to troops in Afghanistan.

Peter Luff: The provision of equipment for our forces in Afghanistan is regularly reviewed, with new equipment and capabilities being developed and delivered in response to emerging requirements. The military assessment is that our forces are now being provided with the equipment they need to undertake the tasks they are doing and that no missions are being compromised by the inadequacy or unavailability of equipment. Having met both 16 Air Assault Brigade and 3 Commando Brigade after their respective tours in Afghanistan, I know that that view is shared by those on the front line who actually use the equipment.

Margot James: I thank the Minister for his response. There has been much criticism of the kit supplied to front-line troops, particularly those on foot patrol in Afghanistan. Will he advise us of any improvements made specifically for those troops on foot patrol to mitigate these threats?

Peter Luff: As I said in my original answer, constant improvements are being made. One of the two that I would highlight has already happened—tier 1 and tier 2 pelvic protection against blast, which is being well received by our own armed services and is now being emulated by the Americans. Secondly, for the future, there is the provision of the light protected patrol vehicle, Foxhound, which will come into service in the early part of next year.

Paul Flynn: What proposals does the Minister have to improve the equipment that will reduce the number of deaths and serious injuries among British troops dealing with improvised explosive devices and bombs?

Peter Luff: I am glad to tell the hon. Gentleman that the third layer of pelvic protection—the tier 3 protection—does precisely that. I can reassure him that work is being done constantly to ensure that those very brave operatives have access to the best possible equipment to do their important task. It is important that they are allowed to disassemble IEDs because they provide vital clues about the tactics of the enemy, which helps prevent further deaths among the widest number of forces serving in Afghanistan.

Service Families (Education)

Stephen Mosley: How many children received support through the additional pupil premium for children of service families in the latest period for which figures are available.

Andrew Robathan: Some 45,000 service children have been recorded as eligible for the service child pupil premium in 2011-12. We are working to encourage service families to complete the annual school census so that their children and their schools can benefit from this additional payment to recognise the uniqueness of service life.

Stephen Mosley: There are currently 134 children from 1st Battalion The Royal Welsh in eight Chester schools, but parents and teachers seem unsure about the purpose and use of the pupil premium in their schools. What has the Minister done to raise awareness of the actions that the Government have taken to support service children?

Andrew Robathan: This is a new initiative. We want to raise awareness, and anything that my hon. Friend can do to help in that regard will be very welcome. We have set aside £9 million this year for the pupil premium, and have also set aside £3 million specifically for schools that take a large number of service pupils and may be experiencing problems. We have invited them to apply for the money, but may I ask my hon. Friend to ensure that they look up the details on the Department for Education’s website and then apply?

Defence Manufacturing

Diana Johnson: What steps his Department is taking to support strategically important defence manufacturing industry in the United Kingdom.

Peter Luff: The Ministry of Defence’s first responsibility when procuring equipment is to provide the armed forces with the capabilities that they require when they need them, in an affordable and sustainable way. The forthcoming White Paper will set out our approach to acquiring technology, equipment and support for our armed forces, and will explain how we will take action to protect our operational advantages and freedom of action where that is essential for national security.

Diana Johnson: I think that all Members will recognise the vital strategic importance of having defence production lines in the United Kingdom, as well as the importance of rebalancing the economy through modern manufacturing jobs, private sector jobs and jobs in the regions. What is the Minister doing to protect the skilled jobs and apprenticeships that are likely to go at BAE Systems in Brough? Those workers will find out on Boxing day whether their jobs are going to disappear. What is the Minister doing about it?

Peter Luff: I have to disappoint the hon. Lady, because decisions about where redundancies fall must be made by defence companies and not by Ministers. I understand her concern about what has happened at Brough, and she will understand what BAE Systems said, in public, about the underlying reasons for the changes. [Interruption.] I can answer the sedentary question from those on the Opposition Front Bench by saying that the White Paper, which will set out our approach in more detail and will help hon. Lady to understand the issues more fully, will be published next month.

Julian Brazier: I fully understand the difficult balance that my hon. Friend is trying to strike between securing the best value for our forces and protecting key capabilities, but may I urge him to look carefully at French industrial strategy? When we are collaborating with a country that has an activist industrial policy, there is a real danger that our procurement policy will end up following French industrial strategy unless we are fully aware of what is happening on the other side.

Peter Luff: Some Members may well find themselves in considerable sympathy with what my hon. Friend has said. Let me simply say that when I engage in discussions with my French opposite numbers, such issues are always at the forefront of my mind, and they will continue to be so—for instance, at the summit that is to be held in December.

Alison Seabeck: The Minister will be aware that the global financial crisis is causing a number of nations to take defence work back in-house, partly in order to protect their own work forces. Others, such as Italy, are seeking to renegotiate contracts, which is leaving UK firms of all sizes open to potential job losses. The Minister’s answer to my hon. Friend the Member for Kingston upon Hull North (Diana Johnson) provided no reassurance that the Government were doing everything that should be done to protect British business overseas. In fact, what we heard was far from reassuring: it was about passing the
	buck back to industry. Will the Minister please reassure us that he will do all that can be done to support British industry?

Peter Luff: With respect, the hon. Lady’s question is rather different from the one asked by the hon. Member for Kingston upon Hull North (Diana Johnson). When it comes to helping British businesses overseas, I think that this Government’s track record compares very favourably indeed with that of the lot opposite when they were in power, and I am happy to tell them that the reason the Under-Secretary of State for Defence, my hon. Friend the Member for Aldershot (Mr Howarth)—the Minister responsible for international security strategy—is not present today is that he is at the Dubai air show doing precisely that. Moreover, my right hon. Friend the Secretary of State was in Japan a couple of weeks ago, making the case for the Eurofighter Typhoon. We are doing a very good job speaking up for British industry overseas: a damn sight better job than the Opposition did.

Mark Menzies: One of the most important defence manufacturing businesses in the UK is BAE Systems in Warton, which is in my constituency and is the home of the Typhoon. Will the Minister update the House on the Government’s efforts to support that world-leading product?

Peter Luff: We are working strenuously to support the product, although I think that in many senses it speaks for itself. What we are doing is ensuring that the wider world recognises the outstanding performance of the Eurofighter Typhoon in the activities over Libya, where it has shown itself to be superior in all respects to every other aircraft in the world today. That is the message that we are taking to India and Japan, and that we are delivering in our many other export campaigns. I am hopeful that we will achieve success in many of them, for the aircraft certainly deserves that success.

Iran

Philip Hollobone: What steps his Department is taking in co-operation with other countries to develop future defence initiatives against Iran and to prevent the build-up of that country's nuclear weapons technology.

Nick Harvey: The MOD conducts contingency planning for numerous possible scenarios around the world. However, the UK continues to work with other countries to achieve a diplomatic solution to Iran’s nuclear ambitions. We want a negotiated solution, not a military one, but all options should be kept on the table.

Philip Hollobone: Do the recent visits by the Chief of the Defence Staff to Tel Aviv and the Israeli Defence Minister to London suggest that Her Majesty’s Government are seeking a closer defence relationship with Israel, with Iran at the top of the agenda?

Nick Harvey: The recent visit to Israel by the Chief of the Defence Staff was part of his long-standing programme of visits. He visited both Israel and the occupied west bank, he was able to speak to both the Israeli chief of
	staff and the Palestinian Prime Minister, and he assessed for himself the security concerns at first hand and urged the two sides to resume direct talks. I have no doubt that during his visit he also discussed the wider security implications in the region.

Topical Questions

Jim Cunningham: If he will make a statement on his departmental responsibilities.

Philip Hammond: My departmental responsibilities are to ensure that our country is properly defended, now and in the future; that our service personnel have the right equipment and training to allow them to succeed in their military tasks; and that we honour our armed forces covenant. In order to discharge those responsibilities, it is necessary to ensure that the Department has a properly balanced budget and a programme that is affordable and sustainable in the medium to long term.

Jim Cunningham: What progress has been made with the Indian Government on the Typhoon deal?

Philip Hammond: As the Under-Secretary of State for Defence, my hon. Friend the Member for Mid Worcestershire (Peter Luff) just said, UK Ministers have been assiduous over the past few weeks in promoting the case for the Typhoon in India and in other countries that are considering the purchase of new fast jets. We understand that there is likely to be an announcement in the next few weeks on the decision made by the Indian Government.

Sajid Javid: Does my right hon. Friend agree that it is deeply irresponsible for certain elements of the press to print untrue scaremongering stories about the future treatment of our armed forces personnel, especially over the Remembrance day weekend?

Philip Hammond: I agree with my hon. Friend. The story that has been running this weekend has been deeply unhelpful to morale in our armed forces, and is based on untruths and misconceptions. There has been no change in the Government’s position on the number of Army posts that will go over the remainder of the decade and no change in the procedure for exempting those recovering from injuries incurred on active service from the redundancy process.

Jim Murphy: We fully understand why the dedicated international security Minister is not with us today, but can the Secretary of State not come to a conclusion where he makes this temporary absence permanent and cuts the number of Ministers at the MOD? This is nothing personal against the Under-Secretary of State for Defence, the hon. Member for Aldershot (Mr Howarth)—he is a good man, he works hard and I am not suggesting that he should be sacked in his absence. However, the Levene review recommended a head count reduction in MOD Ministers and, at a time when the Army is being cut by almost by 20,000 and the Air Force and the Navy by
	almost 5,000 each, why is it that the only place in the MOD exempt from head count reduction is the ministerial offices?

Philip Hammond: As the right hon. Gentleman knows, the appointment of Ministers is a matter for the Prime Minister. But I cannot help noticing that the Leader of the Opposition does not appear to have taken note of the right hon. Gentleman’s self-denying recommendations.

Stephen Hammond: I welcome my right hon. Friend’s comments about the need for sustainability. Will he therefore confirm to the House that he will continue the good work of his predecessor in implementing the whole of the Levene recommendations?

Philip Hammond: I am happy to give my hon. Friend that assurance. I have been through the body of recommendations that Lord Levene made and that were endorsed by my predecessor. I am happy with them as a whole and I will pursue their implementation.

Nick Smith: The British Legion’s money advice service helped more than 3,000 service families with unsecured-loan problems last year. Today’s Daily Mirror reports that firms such as QuickQuid are targeting military personnel and charging annual rates of more than 1,000%. According to the Daily Mirror, the Minister has never heard of payday loans, so how will he stop those get-rich-quick merchants ripping off our service families?

Andrew Robathan: May I counsel the hon. Gentleman? In no circumstances should he believe everything that he reads in the Daily Mirror . However, in response to the hon. Member for Walthamstow (Stella Creasy) who referred to payday loans on Thursday, I made the point that the issue had never been raised with me.

Kevan Jones: You said that you had never heard of them.

Andrew Robathan: I do wish that the hon. Gentleman would be quiet. I had indeed never heard of them, because the issue is not something that has come across my desk. However, I deprecate these ridiculous, high-interest loans, which are appalling. They are not something that we find in the chain of command. It is true that the Royal British Legion does an excellent job in helping families and, indeed, ex-service personnel when they get into trouble with debt.

Jonathan Lord: Will my hon. Friend tell the House how many force elements at readiness the joint Harrier force had at the time of the strategic defence and security review, and what his assessment was of the number of trained pilots and the force’s ability to conduct strike operations?

Nick Harvey: At the time of the SDSR, there were eight qualified Harrier pilots trained to operate off an aircraft carrier, only one of whom was trained to do so under night-flying conditions. The previous Government envisaged that the Harrier force would be worked up to support a small-scale
	contingent operation by the end of 2011. The Harrier force did not have the ability to have conducted both the Afghanistan and the Libya commitments at the same time. Indeed, my advice is that it would have taken 18 months to regenerate the Harrier force to support operations in Afghanistan alone.

Graham Jones: In recent weeks, BAE Systems has made it absolutely clear that the reason that there are 3,000 job losses is the slow-down in the Eurofighter order. In the light of that, can the Secretary of State clarify the Chancellor’s comments to the House on 1 November? When asked about job losses by the hon. Member for Fylde (Mark Menzies), who is in his place, he replied that the job losses reflect the fact that
	“the US defence budget had an impact on BAE Systems.”—[Official Report, 1 November 2011; Vol. 534, c. 758.]
	Will the Secretary of State clarify which UK-US defence cuts the Chancellor was referring to?

Peter Luff: The F-35 joint strike fighter slow-down.

Penny Mordaunt: There are reports that the Department’s medal review has been stopped and that an independent review will now commence. Can the Minister assure me that that will not cause further delays to veterans, such as those of the Arctic convoys, in getting a decision and that no service personnel facing redundancy will miss out on the diamond jubilee medal?

Andrew Robathan: Two questions for the price of one. A review of medals is indeed ongoing. It has not yet been finalised. When it is finalised, it will be put before the House in the normal way. No one who is eligible for the diamond jubilee medal on the correct date, which is, I think, 6 February this coming year, will be affected by compulsory redundancy because the qualification date will be before anyone is made compulsorily redundant, although, of course, if they have not done five years on that date, they will not qualify for the medal.

Geraint Davies: Concern has been expressed about Army recruitment in Swansea because Territorial Army pay is taken off the benefits of Territorial Army personnel, thus undermining demand from those people who are not working to join the Territorial Army. Will the Minister talk to the other Departments involved to try to reconcile that problem?

Philip Hammond: The hon. Gentleman was dozing earlier, but the right hon. Member for East Renfrewshire (Mr Murphy) asked precisely that question, and I was able to reassure him, first, that we are very much aware of the issue and, secondly, that a piece of cross-departmental work is going on to ensure that the negative effects that he suggests do not in fact materialise.

Robert Halfon: Will my hon. Friend consider introducing legislation to allow councils to give council tax discounts to servicemen returning from duty? At the moment, although that is possible, it is very difficult for them to do so.

Andrew Robathan: I am grateful to my hon. Friend for raising the issue. It is within the powers of any local authority to give a discount on council tax, should it wish to do so. I would welcome that if it improves the lot of our service personnel returning from operations.

Paul Goggins: If, in the near future, Members of the other place decide once again to remove the chief coroner from the Public Bodies Bill, the Government will clearly have to think again. In those circumstances, will the Secretary of State stand up for the bereaved families of those who paid the ultimate sacrifice and encourage the Justice Secretary to adopt the affordable alternative put forward by the Royal British Legion?

Andrew Robathan: I do not know whether the right hon. Gentleman was not here or was dozing earlier, but I answered the question—[Interruption.] What I can say to him is that we absolutely care for the bereaved families. That is one of our highest priorities, and rightly so. We wish to ensure that they get decent services inquests, and that is what we are doing. I point out gently to him that it was under the previous Administration that there were problems with inquests.

David Rutley: My family, like many other fans of the Red Arrows, were deeply saddened by the recent tragic loss of Flight Lieutenant Sean Cunningham. Will my hon. Friend tell the House what steps are being taken to investigate that tragic incident fully and to ensure that similar tragedies are avoided in the future?

Nick Harvey: I can assure my hon. Friend that in addition to a service inquiry, the Military Aviation Authority is conducting a detailed analysis of what went wrong. In the meantime, we have grounded aircraft using the same ejector system, but not those that are currently on front-line operations.

Chris Evans: What specific new powers are to be given to local authorities to provide affordable accommodation for service families?

Andrew Robathan: The hon. Gentleman raised the matter on Thursday. Only last night the Minister for Housing and Local Government was on television making the point that we are very keen that people returning from operations or from abroad and moving into their home area where they have not lived for some time should have priority in council housing. That is, of course, the responsibility of local authorities, but we are working hard with them to get them to take note that somebody who has been away for six years may be a resident of Islwyn, even if he has been living somewhere else for the past six years.

Liam Fox: This is the first chance I have had to welcome my right hon. Friend the Secretary of State to his post, which I do with the greatest pleasure and the utmost confidence. Since the Atlanta games there has been an internationally accepted minimal level of protection for the Olympics. Will he confirm to the House that there will be a full range of multilayered defence and deterrence for the London games, including ground-to-air missiles in London?

Philip Hammond: I thank my right hon. Friend for his generous words. I can assure him that all necessary measures to ensure the security and safety of the London Olympic games will be taken, including—if the advice of the military is that it is required—appropriate ground-to-air defences.

Stella Creasy: I am delighted to have raised the consciousness of the Minister about payday loans in our debate last Thursday, and I am pleased to hear his words of condemnation today. May I press him to go a little further? Will he write to his colleagues in the Department for Business, Innovation and Skills to back calls for a cap on the cost of credit to protect our forces families, so that he can turn his outrage into action?

Andrew Robathan: As I said to the hon. Lady on Thursday, I am already investigating the matter, although I make the point again that it has not been raised with me in the past 18 months that this is an issue with service personnel. I think it is an issue, obviously, because the hon. Lady raised it. It is not my responsibility to write to BIS, but if, in the course of investigations, it appears that that is affecting service personnel, I shall certainly take it up with BIS, as I agree with her—surprisingly—that the rates of interest are ridiculously high and should be capped.

Menzies Campbell: Does the Minister understand that any satisfaction there may be in Scotland about the announcement of Army units to be deployed at RAF Kinloss is more than tempered by severe disappointment in my constituency that no such similar announcements have been made in respect of RAF Leuchars? Promises have been made. Is it not time we were told how these promises are to be implemented and some guarantees were given?

Nick Harvey: The announcement in the House on 19 July explained the broad strategic direction that will be taken on rebasing. As far as the particulars of RAF Leuchars or any other base are concerned, further work is currently under way on the detailed site-by-site analysis, but there is a further complication, as the Army is currently conducting a large piece of work on its future shape and structure, so we will not come to any final decisions on basing until that work is concluded, which we expect to be early next year.

Angus Robertson: The full unit establishment total at RAF Kinloss was about 1,500 posts and the annual gross wage contribution to the local economy was £54.5 million. The planned relocation of 930 Army engineers to Kinloss is welcome, but what economic assessment has been made of their relocation?

Nick Harvey: The decision to move Army units to Kinloss was taken on the basis of military efficiency. I acknowledge that the number of personnel will be slightly smaller than the number who were there previously, but the fact is that the decision was dictated by military considerations. I hope that the hon. Gentleman and his constituents will welcome the Army into their community and be grateful for the contribution they make to the local economy

Mark Lancaster: I remind the House of my interests. In the light of the proposed future utilisation of reserves, does the Minister anticipate any need to change their terms and conditions of service?

Andrew Robathan: May I first pay tribute to my hon. and gallant Friend, who continues to serve in the Territorial Army, for which I am grateful? As he knows, there are concerns following the Future Reserve 2020 study, which we are concentrating on, such as the under-recruitment of young officers into the TA, which is extremely important. We are yet to decide on changes to terms and conditions. People join initially for patriotic reasons of service, and secondly, quite rightly, for adventure, excitement and such reasons, but we must of course get the terms and conditions right because finance is also important. We are looking at that closely.

John McDonnell: May I return to the issue of housing? Two weeks ago I was visited by a soldier who is to be invalided out of the Army. He has served in Afghanistan and elsewhere and has local relatives, yet the London borough of Hillingdon is contesting its responsibility to house him. I ask the Minister to liaise with the Minister for Housing and Local Government to get specific advice or instructions on local connection rapidly to local authorities so that they cannot use it to wriggle out of their responsibilities.

Andrew Robathan: I am sorry to hear about that case. If the hon. Gentleman cares to write to me about it, I will certainly take it up with the London borough of Hillingdon. It is a great pity—I put it no more strongly—that some local authorities do not take sufficient care in their responsibility towards the armed forces. We are setting up community covenants, which many local authorities are taking up. They are about local authorities liaising with the military so that they take in people such as his constituent and give them priority when they need it.

Jo Swinson: A recent ActionAid survey found that 86% of Afghan women worry about the return of a Taliban-style Government when international troops leave. What will the Ministry of Defence do in the lead-up to the planned withdrawal of troops in 2014 to ensure that we leave as a legacy an Afghanistan where there is safety and security for women as well as for men?

Philip Hammond: It is absolutely clear that for Afghanistan to have a stable and sustainable future there must be an inclusive political settlement, and that is this Government’s policy. That means including all the ethnic groups within Afghanistan and ensuring the participation of women in Afghani society. That is the direction of the Government’s policy that we will pursue vigorously.

Points of Order

Aidan Burley: On a point of order, Mr Speaker. May I bring to your attention the right hon. Member for Birmingham, Hodge Hill (Mr Byrne) and the hon. Member for Leeds West (Rachel Reeves)—I have notified them in advance—and seek your guidance on whether a breach of the code of conduct might have occurred during the passage of the Pensions Bill? This follows—

Mr Speaker: Order. I am grateful to the hon. Gentleman for advance notice of his purported point of order, a welcome courtesy that might not have helped his cause. If, as I believe to be the case, he wishes to raise a matter relating to the code of conduct—

Aidan Burley: indicated  assent .

Mr Speaker: I am grateful for his nod of assent. He should raise such a matter with the Parliamentary Commissioner for Standards and not—I underline not—as I have had occasion to say before, as a point of order for me.

Chris Bryant: On a point of order, Mr Speaker. Last week, the Home Secretary and the Immigration Minister both asserted on more than one occasion in the House that their relaxation of border controls had not meant that any passengers arriving in the United Kingdom were at any point waved through without even rudimentary checks. However, I have incontrovertible new evidence that that is precisely what happened under a new general aviation policy that started earlier this year. Not only were passports not swiped and the warnings index not checked, but passengers were passed through without even being seen. I have also seen new evidence that the Government have statistics on how often—

Mr Speaker: Order. The hon. Gentleman is an extremely experienced Member, and he will know that matters of genuine contention and debate cannot be matters on which the Chair will rule. If he wants to avail himself of the mechanisms available to him through the Table Office and the other means by which he can draw his concerns to the attention of the House and seek to probe Ministers, I think that it would be best for him to do that first. In this case, I do not have the advantage of prior knowledge of the detailed content of his point of order—[Hon. Members: “Ah!”] I am not complaining about that; the hon. Gentleman is not guilty of any impropriety. It is no good people going “Ah!” as though I have made some dramatic disclosure. However, I have to make a judgment as to whether this matter warrants the further attention of the House now, and on the basis of the information available to me, my judgment is that it does not.

Angus Robertson: On a point of order, Mr Speaker. Various journalists were sent an e-mail from the Ministry of Defence last Wednesday at 6.13 pm informing them of the details of the planned troop deployment to the Kinloss base in Moray. The 930 Army engineering posts at Kinloss, although about 41% lower than the full RAF unit establishment total, will be welcome, but the Ministry of Defence first informed
	me, as a constituency Member, of the decision in a letter from the Armed Forces Minister via an e-mail some 15 hours later, at 9.06 on Thursday morning. Despite my e-mailing him back immediately to ask why the media had been informed some 15 hours in advance, I have yet to have a reply. Mr Speaker, do you agree that it is totally unacceptable for the MOD to operate in this way?

Mr Speaker: I am not sure that I can provide the hon. Gentleman with the satisfaction he seeks on the basis of what I have heard. He has taken this opportunity to put his concern on record, and I do not think that I need to take the matter further—[ Interruption. ] The hon. Gentleman is gesticulating at those on the Treasury Bench, using fulsome hand gestures in the process, but the Minister is under no obligation to respond. I would say, for the benefit of those who are interested in our proceedings, that this is not an occasion for debate. These are narrow matters of points of order for the Chair, and that is why I have ruled as I have done.

Grahame Morris: On a point of order, Mr Speaker. Please could the House have your ruling on the implications of the Information Commissioner’s ruling that the Department of Health has twice unlawfully withheld key risk indicators relating to the Government’s health reforms and to the Health and Social Care Bill? Can you advise the House on whether the Department’s action was unlawful, as stated by the Information Commissioner, and whether it should also be treated as contempt of Parliament, given that the information was sought through written questions from right hon. and hon. Members, and was withheld during the First, Second and Third Readings of the Bill in this House as well as during its unprecedented two Committee stages?

Mr Speaker: I am grateful to the hon. Gentleman. On his first question about the action being unlawful, I will not respond, as it is not the job of the Speaker to rule on such matters. On his second point on the issue of contempt, this is in effect a complaint relating to privilege, which cannot be raised first on the Floor of the House. He should write to me if he wishes to pursue the matter. On the question of any further scrutiny, that is very much dependent on proceedings in the Lords, on which the Public Bill Office can advise. I think that I shall leave the matter there for today.

John Hemming: Further to that point of order, Mr Speaker. The Procedure Committee is very willing to consider references to it of questions that have not been answered. Perhaps hon. Members will wish to know that no such references have been made recently and that we are looking forward to receiving them.

Mr Speaker: As ever, the hon. Gentleman has proved to be most helpful. His enthusiasm for consideration of these matters is widely known in all parts of the House.

EDUCATION BILL (PROGRAMME) (No. 2)

Motion made, and Question put forthwith (Standing Order No. 83A(7)),
	That the following provisions shall apply to the Education Bill for the purpose of supplementing the Order of 8 February 2011 (Education Bill (Programme)):
	Consideration of Lords Amendments
	1. Proceedings on consideration of Lords Amendments shall (so far as not previously concluded) be brought to a conclusion at 10.00 pm at this day’s sitting.
	Subsequent stages
	2. Any further Message from the Lords may be considered forthwith without any Question being put.
	3. The proceedings on any further Message from the Lords shall (so far as not previously concluded) be brought to a conclusion one hour after their commencement.—(Mr Gibb.)
	Question agreed to.

Education Bill

Co nsideration of Lords amendments

Mr Speaker: I must draw the House’s attention to the fact that financial privilege is involved in Lords amendments 16, 23, 34, 36, 37, 40, 41 and 43.

Clause 8
	 — 
	Functions of Secretary of State in relation to teachers

Nick Gibb: I beg to move, That this House agrees with Lords amendment 1.

Mr Speaker: With this it will be convenient to consider Lords amendments 2 to 18.
	Lords amendment 19, and amendment (a) thereto.
	Lords amendments 20 to 22.
	Lords amendment 23, and amendment (b) thereto.
	Lords amendment 24, and amendment (a) thereto.
	Lords amendments 25 and 26.
	Lords amendment 27, and amendments (a) and (b) thereto.
	Lords amendments 30 to 35, 37, 38, 40 to 42, 44 to 46 and 72 to 98.

Nick Gibb: It is with great pleasure that I bring the Education Bill back before the House. It received detailed scrutiny here in the spring, in the course of 22 Committee sittings, before it went off to the other place. Their lordships have given it the full benefit of their diligence and expertise and I am pleased to say that its core content is as it was when it left this House. Before I address the amendments, it might be helpful if I briefly remind the House of the core content. Its main purpose is to give legislative effect to the proposals in the education White Paper, “The Importance of Teaching”, published last November. It also contains some measures from the Department for Business Innovations and Skills, which my hon. Friend the Minister for Further Education, Skills and Lifelong Learning will discuss in due course.
	The Bill has four main themes. First, it seeks to give teachers and head teachers greater freedom and flexibility to use their judgment and expertise to get the best results for their pupils. International evidence shows that greater school autonomy characterises the best performing education systems. The Bill seeks to remove unnecessary legislative duties from schools and extends the benefits of the academies programme to 16 to 19-year-old pupils and vulnerable pupils in need of alternative provision.
	Secondly, the Bill seeks to strengthen the powers and authority of teachers in relation to classroom discipline. We want all children to be educated in a safe environment that is free from disruption and we want all teachers and prospective teachers to feel confident that they have society’s backing in tackling poor behaviour. The Bill will allow same-day after-school detentions and will provide a power to search pupils for any item likely to cause harm or injury. It will also give teachers pre-charge anonymity when faced with an allegation by a pupil that they have committed an offence.
	Thirdly, the Bill matches the increased autonomy it seeks to introduce with sharpened accountability and seeks to focus Ofsted inspections on the four most important aspects of a school’s work. It will require Ofqual, the independent regulator, to secure that the standards of English qualifications are comparable with the best in the world, and it will strengthen the powers of the Secretary of State to intervene in poorly performing schools. It will abolish five arm’s length bodies to reduce wasteful duplication and will ensure that there is accountability to Parliament, through the Secretary of State, for functions that need to be carried out nationally.
	Fourthly, the Bill seeks to promote greater fairness in the context of current fiscal constraints. It will give disadvantaged two-year-olds an entitlement to free early-years provision, and for new higher education students it will enable the new student finance arrangements to come into force.
	There have been a relatively small number of technical and drafting amendments, but their Lordships have also made a number of substantive amendments to improve the Bill, and I shall now explain them.
	The first four of the amendments made in the other place were all made at the request of the Delegated Powers and Regulatory Reform Committee. The Bill gives the Secretary of State a new power to make interim prohibition orders. That power was always intended for use in the very rare cases where it is in the public interest to bar an individual from teaching while investigation into their conduct is under way, prior to a final decision. Lords amendments 1 to 4 insert into the Bill the planned safeguards for the use of this power. Therefore, regulations would require the Secretary of State to make an interim prohibition order only where he or she considers it necessary in the public interest to do so. The regulations would also require the Secretary of State to review the order every six months if the teacher concerned applies for such a review.
	The teacher anonymity provisions in clause 13 are important and sensitive measures. They give teachers protection against the damage to their lives and careers that can result from pre-charge publicity about allegations made by pupils against them. They are one part of the Government’s proposals to back teachers’ authority in the classroom.

Kevin Brennan: Were the Government able to provide any further evidence in the Lords as to the prevalence of such allegations and what proportion of them were found to be malicious?

Nick Gibb: I thought the hon. Gentleman supported these proposals. He will be aware that the National Union of Teachers and the NASUWT have compiled figures on such allegations against teachers. The NUT estimates there are about 200 a year, and we gave evidence to the Lords of at least 15 cases in the last few years where there were damaging local reports and publicity about the allegations before charges were brought.

Kevin Brennan: The Minister is right that the Opposition have supported these proposals, but they must also be carefully scrutinised for any possible unforeseen
	consequences. That has been done very effectively in the Commons in Committee and also in the Lords. Is it correct that in the Lords the Government accepted that about 2% of such allegations had turned out to be malicious?

Nick Gibb: Yes, of course, but we are talking about the effect on individuals, and if there is just one case of someone suffering such publicity about what turns out to be a false allegation, that is one case too many, as such allegations can have devastating consequences on teachers both socially and career-wise. The publicity that just one such case receives also reverberates throughout the teaching profession, undermining teachers’ morale and making them unduly cautious about maintaining discipline in our classrooms. If we are interested in the welfare of pupils in our schools, we have to make sure they are taught in ordered and safe environments, free from bullying and other disruptive activities.
	I thought, however, that the hon. Gentleman was concerned in Committee less about the prevalence of such allegations and more about the question of whether these provisions should be extended to other sectors of the workforce. We have proceeded extremely cautiously, taking into account the fact that we must preserve press freedom as well as the integrity of teachers and their being innocent until proven otherwise.

Graham Stuart: As my hon. Friend knows, I am sympathetic to the Government’s intentions in this regard as well, but I am concerned about press freedom and I would be grateful if he could set out the case for teachers alone being given this exemption from publicity. Such allegations could be equally devastating to members of a different profession. Might this provision prove to be the thin end of the wedge in that there could be a great deal more press censorship and the public will not be able to know about allegations made against people in their local community?

Nick Gibb: My hon. Friend, the Chairman of the Education Committee, makes a good point, but teachers are very much on the front line of maintaining discipline in the classroom. We conducted a survey of 116 local authority designated officers—LADOs—and its findings support the view that teachers are particularly vulnerable to false allegations. Some 23% of allegations against staff in all sectors were made against teachers, and almost half of those were found to be unsubstantiated, malicious or unfounded. The proportion that related to other staff in schools was significantly low: from recollection I think that it was about 14%, compared with the 23% that applied to teachers.

Barry Sheerman: The Minister may recall that in the previous Parliament the Committee looked intensively at that very area, and I support much of what he says, but in that context we made a range of recommendations to ensure that teachers were protected from false allegations, and that head teachers knew what they were doing. Few head teachers confront the situation very often, but very often they suspend people unnecessarily and start the problem running in the first place. We recommended that a code of conduct should be at the heart of the change.

Nick Gibb: I agree with the hon. Gentleman and with the excellent work that he carried out when he was the Chairman of the Education and Skills Committee and the Children, Schools and Families Committee in the previous Parliament. We have looked at the whole process of investigating teachers when they are subject to such allegations, and we are changing the guidance so that there is not a default position of automatic suspension once an accusation is made. We have also been speaking to the Association of Chief Police Officers about the speed of investigations, because we cannot have teachers waiting months or years before allegations are investigated and settled. We want to speed up the process, to remove the automatic and default position of suspension and to enable teachers to continue to have a connection with the school during the course of any allegation, so that they do not feel isolated while the process is under way.

Barry Sheerman: Is it not a fact, however, that the current Chairman of the Education Committee might have a much rosier view of the British press than I do? Anyone who listened to Radio 4’s “Today” programme this morning will have heard one of The Sun newspaper’s most senior journalists say that there should be no reform of British press regulation. If the hon. Gentleman has that rosy view of the press, I certainly want to put it on the record that I do not share it.

Nick Gibb: I really do not want to intervene or interfere in this debate between two such august hon. Gentlemen, but we have been careful to tread warily between the two interests: the interest of protecting teachers from the full force of false allegations before they are proven or charges are brought, and from the publicity that might accompany them, and the important interest of protecting press freedom. We are treading cautiously, and that is why we have not extended the measure to other parts of the children’s work force. We want to see how it works in the first instance before making any further decisions.
	In Committee, the hon. Member for Cardiff West (Kevin Brennan) made the case for providing protection to groups other than teachers, but he accepted our cautious and targeted approach and suspected that the clause, even in its narrow form, might attract the close attention of, as he put it,
	“people more erudite and noble than ourselves”––[Official Report, Education Public Bill Committee, 22 March 2011; c. 557.]
	He has been proven correct, but I am pleased to say that the substance of the provision returns to the House intact and with three important improvements. First, through amendment 5, the clause now makes it clear that tentative allegations that a teacher may be guilty of an offence should be treated in the same way as firmer allegations that they are guilty. That was always our intention because even—or, indeed, especially—tentative allegations can have a damaging effect on the teachers involved.
	Secondly, through amendment 7, the clause now makes it clear that a judge who is considering an application for reporting restrictions to be lifted should take account of the welfare of both the teacher who is the subject of the allegation and the pupil or pupils who are the alleged victims. We will ensure through amendment 11 that where a teacher decides to identify himself or
	herself publicly as the subject of an allegation, reporting restrictions are lifted altogether. It is right that if a teacher effectively waives their right to anonymity by, for instance, writing in a newspaper about an allegation, others can also join the public debate.
	The noble Lords echoed this House’s concern about clause 30, which would have removed schools and colleges from the duty to co-operate with local partners. My noble Friend Lord Hill met a number of peers during the summer to discuss the matter further and he then discussed the outcome of those conversations with me and the Secretary of State. We accept that retaining the duty would provide continuity while we implement the proposals of the Green Paper, “Support and aspiration: A new approach to special educational needs and disability.” That point was made forcefully in Committee. In another place, Lord Hill introduced amendments 18, 19 and 42 to remove from the Bill clause 30 and the related clause 31.

Kevin Brennan: When we were in Committee, I recall the Minister saying that he regarded the duty to co-operate as an “unnecessary prescription” on schools—[ Interruption. ] Perhaps that is the Secretary of State ringing up his hon. Friend the hon. Member for Stroud (Neil Carmichael) to give him the answer. In Committee, the Minister also said that
	“It is not appropriate to delay removing that burden”—
	that unnecessary prescription—
	from schools.”––[Official Report, Education Public Bill Committee, 29 March 2011; c. 729.]
	What points did Lord Hill make in the Lords that were different from those made in the Commons and how did that persuade the Minister to change his mind? Secondly, is this a temporary conversion or does he intend to remove the duty to co-operate at some further stage?

Nick Gibb: We were never against co-operation. It is very important that schools, academies and free schools continue to co-operate with other state bodies, locally and nationally, that affect children. That was our reason for removing the prescriptive duty. A number of changes are happening in relation to the Health and Social Care Bill and the SEN Green Paper and, having considered the matter further and reflected upon it, it is better to maintain the duty until deliberations over those measures are complete and until decisions about the SEN Green Paper have been taken.

Richard Fuller: Although some of us are very focused on the duty of schools to co-operate with the local authority, some of us are focused on local authorities’ duty to co-operate with academies and free schools. Will my hon. Friend advise me what in the Bill will enable us to be sure that local authorities provide the same extent of co-operation to free schools and academies as they do to maintained schools?

Mr Speaker: In responding to his hon. Friend, I know that the Minister will not wish to be led astray and that he will have at the forefront of his mind the fact that he should focus on the merits or otherwise not of the Bill as a whole, but of Lords amendment 1.

Nick Gibb: My hon. Friend makes an important point. Co-operation is important, whether it is with children’s trust boards or from local authorities with other elements of the education world, such as free schools and academies. Local authorities that undermine or try to undermine the establishment of new schools that are demanded by parents in that local authority will find their opinions and actions challenged at election time. For a school to be approved by the Secretary of State as a new free school, it has to demonstrate parental demand. It is not in the interests of a local authority not to co-operate when a group of parents, a group of teachers or others are seeking to establish a free school in its area.
	I know that Labour Members wish to raise a particular concern about admissions, but I thought that it would be useful at this stage for me to explain changes made in the other place. Since we last met, the consultation on the revised admissions codes has closed. The new codes keep protections for those with special educational needs and vulnerable groups. We have expanded on this for children who were in public care—looked after—and have since been adopted. When they are adopted, they will retain their priority status in the admissions arrangements. We are also going to make things simpler for all parents by having a national offer day for primary schools.
	The changes we are making on admissions are modest, and the changes made in the other place have been correspondingly so. First, under amendments 21 and 22, local authorities’ annual reports will continue to go to the schools adjudicator in addition to being published locally. Secondly, under amendment 23, a new clause will allow anyone—absolutely anyone—to object to the adjudicator about school admission arrangements. This builds on our decision to bring complaints about admission arrangements at academies and free schools into the remit of the schools adjudicator—a popular move in this House when we last discussed it. My noble Friend Lord Hill made a further commitment that will be of interest to this House. In Committee, the hon. Member for Cardiff West expressed concern about the possible side effects on the admissions system of an increase in the number of academies, which set their own admission arrangements. Lord Hill has now made a commitment that the chief schools adjudicator will include consideration of this issue in her next annual report.
	The provisions in clause 37 seek to give maintained school governing bodies greater freedom to appoint governors on the basis of their skills. When we discussed those provisions in Committee, I was persuaded, particularly by my hon. Friend the Member for North Cornwall (Dan Rogerson), that we should amend them to ensure a continuing role for a staff governor and a local authority governor on all maintained school governing bodies. Lords amendment 24 does precisely that. Of course, governing bodies will be free to appoint additional governors from among the staff of their school if they think that that will help them to work effectively.
	In the other place, there was full discussion of the inspection clauses. That led to a number of changes, outside the Bill, to strengthen the proposed arrangements, including enhanced risk assessment procedures for schools and further education providers that will qualify them for exemption from routine inspection. We will debate
	in due course the Opposition amendments on parliamentary scrutiny of the regulations exempting institutions from inspections.
	In relation to academies, the Bill retains important measures to facilitate—

Kevin Brennan: In the light of what the Prime Minister has said today about the dangers of schools coasting, is the Minister content, prior to the discussion of our amendment, that the Government’s position on this will not make matters worse, given the potential for schools that have been found to be outstanding to coast and then not to be inspected, with it being difficult to trigger an inspection for them in future?

Nick Gibb: The Prime Minister made some very important points about coasting schools in his article in The Daily Telegraphtoday. We want to see standards rise throughout the education system. There has been a concentration on failing schools, but we must also concentrate on the schools in the leafy suburbs that are not challenging their pupils as well as they should. All schools will now be subject to our scrutiny to make sure that they raise standards. The new performance tables will identify how schools perform in relation to children of high academic ability, as well as how they perform in relation to children of a lower academic ability. We will reflect on some of the issues raised by the hon. Gentleman, but outstanding schools are, by their nature, not necessarily to be regarded as coasting if they have been graded by Ofsted as outstanding. The arrangements I talked about are to do with using risk assessment strategies to pick up on problems, even in outstanding schools. Those risk assessments are what will trigger Ofsted to carry out an inspection in an outstanding school.

Kevin Brennan: My concern is that the exemption from inspection is almost an invitation to coast. There is a danger of that. Does the Minister not accept that it might be worth cogitating on that a little further in the light of what the Prime Minister has said?

Nick Gibb: I am happy to think further about those issues. However, the point of the proposal is that it is difficult for schools to achieve the accolade of outstanding from Ofsted. I am sure that the hon. Gentleman and the hon. Member for Liverpool, West Derby (Stephen Twigg) have visited schools that are categorised by Ofsted as outstanding. It is clear why those schools have been so categorised. I was at a school last week in Wiltshire that had been categorised by Ofsted as outstanding in all 27 categories. I believe that it was the first school to be given such a grading.

Graham Stuart: The Minister is absolutely right to have proportionate inspection. We need to be careful to ensure that outstanding schools that may end up coasting or dropping their standards are picked up. If the shadow Minister is suggesting that it would be a better policy to inspect every school, however outstanding, all the time, he is completely wrong. A proportionate approach with the right safeguards and triggers in place and with constant review of those triggers is the right way to go. The Government are right on this issue.

Nick Gibb: My hon. Friend is right that one has to be proportionate in these issues. Ultimately, this is a matter for the chief inspector of schools. If the results of an
	outstanding school start to decline, as was hinted at by the hon. Member for Cardiff West, it will be picked up in the risk assessment. He has made important points and we will, of course, reflect on them in the usual way.

Kevin Brennan: I will intervene one final time on this issue because I do not want to detain the House. The Chairman of the Select Committee knows that what he described was not what the Opposition proposed in Committee. We proposed triggers for inspection that would be appropriate for schools that had been ruled outstanding but may have slipped. Is that not exactly what the new chief inspector of schools, who was just appointed by the Government, has said in relation to checking whether outstanding schools remain outstanding? After all, when outstanding leaders leave outstanding schools, that can often lead to a big change in the performance of those institutions.

Nick Gibb: The hon. Gentleman makes a very good point. When a new head teacher comes into a school it can have important effects, and not necessarily beneficial ones if the school has been led by a very effective leader. That would be a risk assessment issue. I know that it is an issue that the new chief inspector, Sir Michael Wilshaw, is concerned about. We will reflect on those points in due course. The principle of having proportionate inspection and targeting the limited resources on schools that have the most pressing need is important. However, we must take it into account if a school that is graded as outstanding is not graded as outstanding in teaching, for instance.

Nicholas Dakin: I agree with what the Minister and the shadow Minister say about proportionality in inspection. However, it is important that outstanding schools are inspected by Ofsted as part of the ongoing learning of other schools. I hope that the Minister will ensure that Ofsted continues to do that to spread good practice in the system.

Nick Gibb: The hon. Gentleman makes a very good point. Ofsted inspectors need to learn what an outstanding school looks like. That always was the case. Even when schools are exempted from inspection, inspectors will still see outstanding schools in themed inspections, which might look at how religious education or maths is taught. On those occasions, inspectors will still experience outstanding schools.

David Ward: Does the Minister agree that the way to deal with coasting schools is not so much through the inspection process, but through the publication of contextual value added evidence from schools?

Nick Gibb: My hon. Friend makes an important point. Performance tables are an important piece of the jigsaw of measures that holds publicly funded schools to account. We are not going to pursue the contextual value added measure, because of its flaws, not least of which is the fact that it tends to entrench low expectations for certain sections of society, which we do not believe is right. All children, from all backgrounds, should be expected to reach the best of their academic ability at school, and schools should deliver a high quality of education to all young people. However, there are other important progress
	measures, such as how a child performs at the end of key stage 2 compared with how they perform in their GCSEs.
	As I said earlier, in the performance tables to be published in January, we intend to have separate columns indicating how well a school performs in relation to children who enter secondary school with a level 5 at key stage 2 and those who enter with a level 3.

Mr Speaker: Order. May I say gently to the Minister that I know he is making full efforts to satisfy his audience, and in one sense that is appreciated—if this were a seminar it would be an extremely therapeutic and informative one—but it is important that we tend to the specifics of the amendments with which we are dealing. For the benefit of colleagues who might labour under a misapprehension to the contrary, this is not a Second Reading debate on coasting schools. We are attending to narrow and particular amendments, to the consideration of which I know the Minister will now return.

Nick Gibb: I am grateful for that ruling, Mr Speaker, and I will press on by turning to academies.
	The Bill retains important measures to facilitate the Government’s ambitious plan to extend the proven benefits of the academy programme to a much greater number of pupils. One of those measures is the extension of the academy model to alternative provision and the 16-to-19 sector. Lords amendments 72 to 81 are consequential on the creation of those new types of academy, and the Government tabled them in line with a commitment that I gave in Committee to put more such consequential amendments into the Bill. In addition, Lords amendment 89 reduces the reach of the powers given to the Secretary of State by schedule 14 in the case of private land leased to new academies.
	In addition, three new clauses were added to the Bill in the other place, the first of which is in Lords amendment 34. Under section 6(2) of the Academies Act 2010, a local authority must cease to maintain—that is, cover all the costs of—a school once it converts to academy status. Some banks and local authorities have asked whether that prohibition on maintenance might prevent a local authority from making payments under private finance initiative or other contracts in relation to schools that have converted into academies.
	Local authorities have always been able to use their own resources to provide assistance, including financial assistance, to academies, and to enter into contractual commitments and incur liabilities on their behalf. We are clear that their continuing to do those things would not have been prevented by the wording of section 6(2) of the Academies Act, and that was not the intention behind the Act. All academies are, and will continue to be, maintained by the Secretary of State under funding arrangements entered into under section 1 of that Act. Any assistance that local authorities provide to academies, whether financial or otherwise, will only ever be a proportion of the total expense of running an academy. Lords amendment 34 therefore confirms that local authorities can continue to make payments for academies under PFI and other contracts.

Richard Fuller: This is a slightly specific question, Mr Speaker, but it does relate to the Lords amendments.
	In circumstances in which a local authority had already made an undertaking for capital provision to a federation of schools, and a school that was part of the federation wished to become an academy, would the local authority be able to advise that school’s governors that they would no longer be entitled to the capital aid expenditure promised for schools in that pyramid? Could the local authority make that funding consequential upon a school staying maintained or moving to academy status, or do the Lords amendments prohibit that possibility?

Nick Gibb: I know what my hon. Friend refers to, but I would prefer to get the technical answer to his question absolutely right and will therefore write to him, so that he can be clear when he raises this issue with his local authority that he has a proper analysis of the legal position and not something that I have spoken from memory.
	In response to concerns raised in Committee in the House of Lords, the Government introduced an amendment to give Ofqual the power to fine awarding organisations in certain circumstances. Our intention is to ensure that Ofqual has a full range of effective and proportionate powers to use to carry out its duties and responsibilities.

Graham Stuart: In the Lords, the Government accepted various amendments to limit the impact of such fines on global companies, which is welcome, but the measure was introduced with very little consultation. What is the evidence that we need fines to get awarding bodies to comply with Ofqual? What is the evidence that there is a problem to which fines provide an answer?

Nick Gibb: My hon. Friend will have seen over the summer some of the errors in the exams. They are unacceptable. We believe that the awarding organisations should not make the quantum and seriousness of those errors again. Other regulators have such powers, and if he bears with me, I will try to set out why we introduced those provisions.
	The provisions in Lords amendments 16 and 17 are broadly consistent with the Regulatory Enforcement and Sanctions Act 2008. As many hon. Members will know, including my hon. Friend, the Act provides many other regulators with a toolkit of sanctions that are risk based, consistent, proportionate and effective. Ofqual currently has only two types of sanction available to it: the power to direct an awarding organisation; and the dramatic, nuclear option of partial or full withdrawal of recognition. In addition, before Ofqual can use its current enforcement powers, it must be the case that an awarding organisation’s failure to comply with a condition has prejudiced, or is likely to prejudice, either the proper award of a qualification or students who might reasonably be expected to seek to obtain such a qualification awarded by that organisation.
	The Government believe that those tests unnecessarily limit Ofqual’s powers and could reduce its capacity to take timely and proportionate enforcement action. Removing the tests and giving Ofqual a power to fine will help to prevent the kind of mistakes in exam papers that we saw last summer, which undermine the hard
	work of the pupils who sat them. That is the purpose of Lords amendment 16, and Lords amendment 17 confers similar powers on Welsh Ministers as the regulators of Welsh qualifications.

Graham Stuart: I am grateful to the Minister for setting out the Government’s thinking, but I am not entirely persuaded. The currency on which awarding bodies trade is their reputation. Notwithstanding the problems this summer, they needed no fine or massive regulatory hammer to bring them to book. All awarding bodies would immediately seek to improve their systems following such errors—I believe they did so. It feels as if we are introducing sanctions that are unnecessary for the workings of that market. The Government have pledged to eschew unnecessary regulations unless there is an overwhelming case, but I am not sure that the errors last summer make that overwhelming case.

Nick Gibb: I must disagree with my hon. Friend, because the seriousness of the errors was not just in their number—I believe there were 13 errors in exam papers this summer. What was particularly serious was the fact that when we asked awarding bodies to check that there were no further errors, they affirmed that they had done so or that they would do so, but then new errors appeared. That is why what happened this summer was so serious rather than the initial errors in the papers.
	On reputation and the market, all the main awarding bodies had errors, so there is no market mechanism—no one of them could say, “We had no errors but the others did.” My third argument is that all regulators have such powers. We cannot rely on the nuclear option of ending accreditation.

Damian Hinds: There are considerable costs for schools when they switch from one awarding body to another. Does my hon. Friend therefore agree that the idea of a market operating in the normal way does not quite apply?

Nick Gibb: My hon. Friend is right. All kinds of other factors will determine which awarding organisations schools use and why, and there is a “stickiness” compared with the fluidity that might exist in another market situation.
	Lords amendment 37 would give the Secretary of State the power to pilot the use of direct payments in education for children with special educational needs. In the Green Paper on special educational needs and disability, we committed to give every child with a statement of SEN or a new education, health and care plan the option of a personal budget by 2014. One element of a personal budget can be a direct payment to a family to buy support for their child. Direct payments are already being used in health and social care, and we want to test how the greater choice and control they give to families can be effectively achieved in education too.
	With those brief remarks, I commend the Bill and these amendments to the House.

Kevin Brennan: In this debate on Lords amendment 1 and all the amendments that it is highly convenient—for the Government, anyway—to group with it, I note that the Bill returns to us from the Lords without any
	non-Government amendments. Perhaps that is a reflection of changing times and the new, rigid hegemony in the other place, whereby amendments are rarely passed there without the Government’s say-so.

Nick Gibb: I thought that the hon. Gentleman might be a little more generous about the powers of persuasion of my hon. Friend Lord Hill.

Kevin Brennan: I was indeed going to be generous—about the powers of persuasion of our Front Benchers in the House of Lords. They persuaded the Government—more effectively than my hon. Friends and I in the Commons did—to change their mind on one or two issues, which I shall come to in a moment.
	The Minister has taken the trouble to talk us through the Lords amendments, as he said he would, but some questions emerge from what he said that, if he has the leave of the House to speak later in the debate, I hope he will answer. Lords amendments 1 to 4 relate to clause 8 and the Secretary of State’s functions in relation to teachers. The Bill abolishes the General Teaching Council for England. I note that some criticisms have been made of its operations. One year after the publication of the White Paper, “The Importance of Teaching”, in which the Secretary of State said—I agree with him about this—that there was
	“no calling more noble, no profession more vital and no service more important than teaching,”
	it is significant that he has taken the opportunity to abolish the professional body.
	The Bill transfers some of the General Teaching Council’s functions to the Secretary of State, among which is the power to prohibit a teacher from teaching. In Committee in this House, we debated an Opposition amendment—which, surprisingly, was not successful—that would have required the Secretary of State to keep a list of persons prohibited from teaching. I note that Lord Hill confirmed in the other place that the Government believe that a database of teachers prohibited from teaching will be established. We tabled amendments here and in the other place to require the Secretary of State to keep a register of qualified teachers—again, to our surprise, without success—but Lord Hill indicated that he would consider the matter, saying,
	“we have been persuaded by concerns raised in this House and elsewhere that there is a genuine need for the Government to help schools to know who has qualified teacher status and who has passed induction.”—[Official Report, House of Lords, 18 October 2011; Vol. 731, c. 257.]
	That is welcome. He went on to confirm that there would be an online database from 2012.
	Another concern is the proposal to give employers discretion over which cases of misconduct—those that might lead to the prohibition of a teacher—to refer to the Secretary of State. Again, colleagues in both Houses raised concerns about transparency and consistency. I welcome Lord Hill’s notification to Baroness Jones that the Government are developing advice on the new system to help professional conduct hearing panels determine when a teacher should be prohibited from the profession and that such advice will be available publicly.
	Lords amendments 1 to 4 would enable the Secretary of State to issue interim prohibition orders—quickly imposed orders that prevent a teacher from undertaking
	work while the Secretary of State is considering their case—where he considers it in the public interest to do so, and they must be reviewed every six months. The amendments were tabled in Grand Committee in the House of Lords, but I do not think they were debated there. Their rationale was not given, so when the Minister replies he might like to emphasise what the rationale was, what the amendments will achieve, why they are so important and perhaps why they were not included in the first draft.
	Lords amendments 5 to 15 relate to restrictions on the reporting of alleged offences by teachers, about which we had an exchange earlier. We have supported the Government’s intention to help protect teachers from malicious allegations, but we have also been keen to ensure that the provisions are properly scrutinised, as there is a possibility of unintended consequences.
	The Lords amendments would extend the reach of clause 13 to cover tentative allegations against teachers. As the Minister rightly pointed out, following advice from the trade unions and others, we argued that the clause’s reach could be extended so that the restrictions apply not only to teachers in schools but to other school staff. The Chair of the Select Committee, the hon. Member for Beverley and Holderness (Mr Stuart)—I am sure it is only a matter of time before he becomes a right hon. Gentleman—mentioned this earlier. In our view, other school staff and staff in further education colleges should be included. The impact of a publicly reported unproven allegation, which the Minister eloquently described, applies to those people, too, and is potentially equally damaging. I understand the Government’s general desire to limit the number of people on whom the provisions will have an impact, but I do not understand why teachers in FE colleges should not be covered when teachers dealing with young people of the same age group in sixth forms—quite possibly teaching exactly the same subjects—are covered. This seems to be an inconsistency in the Bill.
	I note what the Minister said about extending the provisions to cover tentative allegations. I make it clear that we do not object to that, but we ask him to be absolutely clear about his motives for including the amendments at this stage. Does he have any further thoughts on the desirability of extending the scope to include non-teaching staff and all staff in FE colleges? If he has any compelling reasons why those staff should be excluded, we would like to hear them. Having listened to him earlier, I am not sure what his evidence is for excluding these staff from the scope of the provisions. I understand why he might want to limit the number of people covered—perhaps that is why he has put a ring fence around teachers—but I do not understand the rationale for failing to include the other staff.

Graham Stuart: The hon. Gentleman talks about extending the provision to other staff in schools. Do he and his party believe that it should be extended further to other workers? For example, a social worker dealing with children at risk could be equally devastated by publicity surrounding allegations against them—

Mr Speaker: Order. The disadvantage of the hon. Gentleman’s intervention was that, interesting though it was, it bore no relation to the amendment we are discussing.

Kevin Brennan: As always, the hon. Gentleman makes a thoughtful point but, as you have confirmed, Mr Speaker, it unfortunately falls outside the scope of the Bill.
	Lords amendments 16 and 17 deal with Ofqual’s enforcement powers, which the Minister mentioned earlier. The Labour Government began the reform of the examination system in 2007 with the “Confidence in Standards” White Paper. It proposed the establishment of an independent regulator, Ofqual, which would be separate from the Qualifications and Curriculum Development Agency and would be able to fine exam bodies. Currently, the Apprenticeships, Skills, Children and Learning Act 2009 allows Ofqual only to direct an examination board to change its practices and, as the Minister said, to withdraw recognition.
	I agree that it would be helpful for Ofqual to have more sanctions at its disposal to ensure that examination boards minimise their errors, but to an extent I share the concern expressed by the hon. Member for Beverley and Holderness. This proposal has appeared at a late stage. I know that Christmas is approaching, but, as I am sure the Government Whips will confirm, using Bills as Christmas trees on which to hang whatever a Government wish to hang on them is not always a good way of legislating, and I had thought the Government had pledged not to do that.

Graham Stuart: As I debated the abolition of independent schools only a couple of weeks ago with the hon. Gentleman, who supported the motion, it is a pleasure to find something on which we can agree. He is right: we need to hear more from the Government to justify the measure. It is like the Dangerous Dogs Act 1991. Legislating instantly following an incident in the summer, rather than checking and thinking through the principles behind the proposed legislation, could be a mistake.

Kevin Brennan: Let us hope that this will not be another Dangerous Dogs Act.
	I am not going to suggest that Labour has not been guilty in the past of hanging proposals on to Bills as they progress through Parliament, and, as a former Government Whip, I am not going to suggest that I have not occasionally tried to lecture Ministers about the practice, but it often causes problems further down the line. We can understand how it happens.
	On 22 June 2011, a newspaper headline announced “Cameron promises ‘tough action’ over GCSE and A-level exam blunders”, and a sub-headline added “Prime minister says mistakes are unacceptable and assures Ofqual will rectify system to prevent further errors”. That was converted into a panic in Government, which rippled into the Department for Education, and the Secretary of State said that the Prime Minister was exercised about the issue. “What can we do? Oh, we have a Bill going through Parliament: perhaps we can dream up a few clauses to put into it. Wasn’t there a proposal at some stage to introduce fines? Let us use that: it is already half written.” However, the proposal was never properly scrutinised. It should have been subjected to proper pre-legislative scrutiny.
	As I have said, we are not going to oppose the amendments, but I want to record our concern that something that the Government said they would not do is happening now, before our very eyes.

Nick Gibb: As the hon. Gentleman will know, the previous Administration, of which he was part, considered extending the fining power to Ofqual. Indeed, Kathleen Tattersall lobbied Members of Parliament for it to be introduced during the Committee stage of the Apprenticeships, Skills, Children and Learning Bill before the election. Ofqual will launch a consultation when it begins to set out the circumstances in which the new power will be used, and the consultation will last 12 weeks in the normal way.

Kevin Brennan: Not only am I aware of that, but I actually said about two minutes ago that it had originally been in the White Paper that the Labour Government introduced. That does not alter the fact that had the Government intended to do this, they could have consulted on it originally, rather than hang it as a bauble on a Christmas tree Bill and react to newspaper headlines. It seems that these proposals have been rushed. I welcome the fact that there is to be a proper consultation, but consultations should happen before proposals are enacted rather than after.
	Lords amendments 18 and 19 remove clauses 30 and 31, which repeal the duties to co-operate with a local authority and to have regard to the children and young people’s plans. We welcome the Government’s support for reinstating the duty to co-operate by removing clauses 30 and 31. Labour Members on the Public Bill Committee voted that clause 30 should not stand part of the Bill, but Government Members defeated us. Baroness Hughes co-signed the amendments to leave out clauses 30 and 31, so we strongly support their removal. Had they remained part of the Bill, the Government would be putting the reduction of alleged bureaucracy ahead of the safeguarding needs of some of our most vulnerable children. In their professed zeal for cutting as many processes, systems and guidance as possible, the Government were in danger of throwing out things that raise standards and improve safeguards for our children. These duties are examples of the latter.
	As I said in an intervention, in Committee the Minister characterised the duty to co-operate as an unnecessary prescription and went on to say that it was not appropriate to delay the removal of that burden on schools. In the Lords, Lord Laming spoke eloquently and convincingly to expose the irresponsibility of the Government’s position:
	“In every inquiry that has followed a tragedy to a child with which I am familiar, two key messages have permeated every report like the lettering through a stick of rock. The first is that in future each service, including education, must greatly fulfil its particular responsibilities to promote the safety and well-being of each child. The second is that each service must develop the skills to work successfully across organisational boundaries and share information at an early stage.”—[Official Report, House of Lords, 30 June 2011; Vol. 728, c. GC268.]
	I can understand why the Government might have listened to Lord Laming more readily than they listened to us in the Commons, but they were fully aware of the views of Lord Laming and others on these matters.
	Lord Laming went on to say:
	“The development of children’s plans and children’s trusts under the Children Act 2004 were designed specifically to place the well-being and the promotion of care of children in this wider context. In the letter which the Minister sent to me, he said that the Bill simply reverts to the earlier position.”—[Official Report, House of Lords, 30 June 2011; Vol. 728, c. GC268-269.]
	So that was what the Government wanted to do: to revert to the earlier position—the one pre-Laming—using this Bill. By including these clauses, they originally showed their disdain for the services and processes that have since been put in place to keep our children safe. It is abhorrent that any Government, not least one who said at one time that they wanted to be the most family friendly ever, should be willing to risk the safety of our vulnerable children just so that they can reduce prescription.
	I am glad that the Government have got it, albeit late in the day, but I am concerned that this is a temporary change of mind. I was not assured by what the Minister said in reply to my intervention, because Lord Hill’s letter to Baroness Hughes on 12 October said:
	“We are persuaded that the duty in itself provides schools, colleges and others with sufficient freedom to determine the arrangements that work best for them”.
	In a letter of 6 October 2011 to Baroness Hughes, he said that the reason for the Government’s change of mind was that this was a temporary measure while they worked through how to achieve better collaboration in the planning, commissioning and delivery of services.
	I welcome the Lords amendments, but we want to strengthen them slightly. We have tabled an amendment that would ensure that schools must in all cases have regard to children and young people’s plans created by children’s trust boards, whether or not they are made under section 17 of the Children Act 2004. I should like an assurance from the Minister. Are the Government committed long term to a wide-ranging, overarching duty on schools to co-operate with local authorities and other local partners, which include health and police bodies, to promote the well-being of children? Is that a long-term commitment of the Government, or do they intend to water down or attempt once again to abolish the duty in the future?

Nick Gibb: Perhaps I can help the hon. Gentleman by quoting my noble Friend Lord Hill, who said in another place that he accepted the point made by our noble Friend Lady Walmsley that
	“at a time when the Government have recently announced pathfinders to test and work through our SEN Green Paper proposals, which seek to encourage greater partnership working, we should not risk sending…any confusing messages about the importance of partnerships. I took their advice and decided that the simplest thing to do was to delete the relevant clauses.”—[Official Report, House of Lords, 24 October 2011; Vol. 731, c. 634.]

Kevin Brennan: The interesting thing is that one reason why the Government became confused or were in danger of sending out confusing messages was the interminable delay in the publication of the Green Paper on SEN, which we were promised well before the consideration of the Bill in Committee and which finally turned up extremely late. Had it been published on time, perhaps the Government would not have been in danger of sending out confused messages, but I simply reiterate that we are concerned that the Government do not appear to have a long-term commitment to give schools an overarching duty to co-operate. We await confirmation from the Government that they believe that such an overarching duty to co-operate is important and should be retained in the long term.
	Labour’s amendment (a) to Lords amendment 19 would require maintained schools to have regard to children and young people’s plans produced by children’s
	trust boards whether or not that is prescribed in regulations made by the Secretary of State. We voted in the Commons that clause 30 should not stand part of the Bill. Our amendment to delete clause 31 and insert another clause is intended to extend that opportunity for that omission to be retained.
	The Government’s suggested changes to the law on the arrangements to admit pupils to school have been debated throughout the Bill’s passage through Parliament. On two occasions—on Report in the Commons and Lords—the Government have introduced amendments that have responded to some if not all the points made by the Opposition. The whole point about admissions is fairness and how we can have a system that gives children fair access to local schools in accordance with their parents’ wishes. In the centrally managed schools system that the Government are creating, it is regrettable that the Government have resisted placing a clear and unequivocal duty on the Secretary of State to work towards fair access to education.
	We welcome the reinstatement of the duty on local authorities to send reports to the adjudicator, which is the effect of amendments 21 and 22. The fact that the reports will not now receive the special treatment for such reports, which is removed by amendment 20, is regrettable, although I hope that it does not lessen their importance and that the contents will still receive the full attention of the adjudicator. I trust that that is what will happen.
	A greater problem is the evidence that the reports contain about local authority action to ensure that admission arrangements are compliant with the law and the admissions code. The chief adjudicator himself has been lukewarm about the quality of such local authority reports, indicating that local authorities have been happy to confirm that admissions arrangements are code-compliant when, after investigation by the adjudicator, that has been found not to be the case. He noted in his recent annual report:
	“If LAs are truly going to focus on being the champions of children and parents, then they really must put more effort into their ‘policing’ role.”
	The amendments, which collectively allow anybody to refer admissions arrangements to the adjudicator, are welcome, although that will be subject to regulations.
	There is one area where we believe we can improve on the Lords amendments, in particular amendment 23 and new subsection (7) on objections to admissions arrangements. The subsection adds
	“any other person or body”
	to the list of persons who must comply with a binding decision, which will include the objector. It does not state the time in which the admissions arrangements must be made compliant. This was debated on Report in the Commons when the Schools Minister seemed interested in the idea of quick compliance, although he described the Labour proposals at that time as
	“a mere two weeks’ grace”
	in which to allow schools the freedom to implement decisions. Although the Minister noted:
	“Admissions policies must be locally consulted on for at least eight weeks to allow all parties to consider proposals or amendments”—[Official Report, 11 May 2011; Vol. 527, c. 1236-7.]
	surely there cannot be any need for consultation where there is a straight matter of making the admissions arrangements comply with the law and the admissions code.
	The draft code and regulations that were published last week seem to confirm that the Minister wishes to allow schools to take as long as they want to ensure compliance with a binding judgment. We believe that justice delayed is justice denied, so our amendment to Lords amendment 23 is about the timely righting of wrongs for the benefit of parents and children.

Richard Fuller: On the hon. Gentleman’s observations on Lords amendments regarding schools admissions policies, one of the objections put about by some of those who oppose free schools and academies is their fear that admissions policies will somehow be discriminatory. Will the hon. Gentleman take this opportunity to confirm that the amendments suggested by the Lords put to bed that lie?

Kevin Brennan: The Government made it clear during the Commons stage that they wished the academies to be subject to the admissions code. We welcomed that at the time and I am happy to welcome it now, because any state school should have a fair admissions policy. Any school funded by the taxpayer should admit pupils on a fair basis in accordance with the code. We therefore welcome the extension of the code to academies and the clarification of that by the Government, rather than relying on funding agreements in order to achieve that.
	One of the innovations of the Bill that we debated is the change to the powers of the schools adjudicator. Currently, when an admissions authority is found to be in breach of the code, the adjudicator can rectify any flaws with immediate effect, but following the passage of the Bill, the adjudicator will be able to make only “binding” decisions, which the admissions authority will be obliged to implement. Ministers have already made it clear that the purpose of that change is to emphasise the importance of schools taking responsibility for their own actions, but it should not allow them the scope to avoid those responsibilities or to frustrate parents who have made a successful complaint and have a legitimate expectation that matters will be put right promptly.
	The draft version of the admissions code was pretty clear. Paragraph 3.1 stated:
	“The admission authority must revise their admission arrangements immediately to give effect to the Adjudicator’s decision.”
	That was the original version of the code issued by the Minister, which was pretty clear and unambiguous, as it should be. However, I was dismayed to read in the revised version of the draft code, published 10 days ago, that paragraph 3.1 has been changed. It now states:
	“The admission authority must where necessary revise their admission arrangements as quickly as possible and no later than 15 April following the decisions (i.e. the deadline for determination of admission arrangements) to give effect to the Adjudicator’s decision.”
	It is not clear from reading out those two sentences, but there is an important difference in their visual presentation. In the first sentence the word “must” is rendered in bold, whereas in the second sentence it is in plain text
	and “15 April” appears in bold. The proper sense of urgency and compulsion seems to have been replaced by one of contingency and delay. Although the second sentence states “as quickly as possible”, which is a weaker statement, the eye is drawn to “15 April”. Bearing in mind that the deadline for objections has been brought forward by a month to 30 June—a sensible change that we support—that means that there could be a delay of 10 months or more before a decision is implemented, which is simply unacceptable.
	It is not necessarily for the legislation or the new code to undermine the effectiveness of the office of the adjudicator in a wholly unnecessary attempt to provide for circumstances that have not proved problematic under previous arrangements, so our amendment would put it beyond doubt that, where changes are required in response to valid objections, they must be implemented in time to benefit those who made them.
	On constituting governing bodies, to which the Minister referred, it might be helpful if he offered some clarification. Our amendment was intended to make it absolutely clear what the Government’s amendments mean in relation to staff on governing bodies. In Committee, the Minister said:
	“I am cautious about prescribing centrally the basis on which governing bodies should appoint people.”––[Official Report, Education Public Bill Committee, 31 March 2011; c. 811.]
	Having had time to consider the matter, the Government and the Minister appear to have changed their minds completely. If that is the case, we welcome it. Will the Minister confirm that he now thinks that more than one member of staff could be a member of a governing body, which might help us in relation to our amendment? If he does so now, he might not need to later.

Nick Gibb: I am happy to confirm that we want to reduce the amount of prescription on how to constitute a governing body. After deliberation and discussions with Members of this House and in another place, we have said that we will prescribe one staff member and one local authority representative, but that does not remove the discretion of governing bodies to appoint others; it is merely stating that there should be one staff member and one local authority member.

Kevin Brennan: That is extremely helpful. The Minister’s words will probably satisfy us so that we need not press that amendment to a vote later.
	The chief inspector and the question of whether schools can be exempted from inspection were the subject of our earlier debate and of some interventions by me, the Chair of the Education Committee and my hon. Friend the Member for Scunthorpe (Nic Dakin), who is no longer in his place—I almost said Grimsby, but it is important to get the right part of Lincolnshire. Those remarks, and what the Prime Minister said earlier today about coasting schools, bring the issue more clearly into focus. As it stands, the clause removes the requirement for Ofsted—in other words, the chief inspector—to inspect and issue a report on each school in England, at a frequency set out in regulations, that rates the overall quality of the school and sets out its areas for improvement. Clause 41 will have a similar effect on further education institutions, which will be debated in the second group of amendments.
	In effect, the provisions would exempt certain schools from section 5 inspections. Furthermore, the exemption would not be for a fixed number of years, and neither would a school be exempt only until something indicated that standards needed to be re-checked, such as a complaint from parents or pupils, a change of head, or concern being expressed by the local authority. It is possible that, under the clause, some schools could be exempt from inspections almost in perpetuity unless they wanted to pay for one.
	It was pointed out earlier that a school could still be inspected under the chief inspector’s programme of surveys of curriculum subjects and thematic reviews, during which time the chief inspector may elect to treat the inspection as a partial section 5 inspection. However, that does not mean that every school would be inspected—far from it. In the case of the curriculum and thematic reviews, only parts of the school’s performance would be looked at.
	The Prime Minister said earlier today that he was concerned that comprehensives in wealthy villages and market towns were sometimes coasting, although I do not know why he picked out comprehensives; that could apply equally to grammar schools in some parts of the country. He said that the fact that their
	“respectable results and a decent local reputation”
	hid the fact that their pupils could be performing much better. We know how quickly schools can move, for a variety of reasons, from being outstanding to what the Prime Minister describes as “coasting”. The Opposition’s proposals to provide more triggers for inspections when real concerns arise should have been accepted by the Government.
	When Sir Michael Wilshaw gave evidence to the Select Committee on 1 November 2011, during his pre-appointment hearing before taking on his role as the new chief inspector of Ofsted, he said:
	“Ofsted is about raising standards and it seems to me that there are only two levers for raising standards; one is Government and regulation, and the other is Ofsted.”
	He later went on to correct himself, saying that he meant “two main levers”, stating:
	“In terms of accountability, Government and Ofsted are the two main levers.”
	In relation to the amendments, will the Minister tell us whether he agrees with the new chief inspector of schools in that regard?

Damian Hinds: Does the hon. Gentleman agree that the theoretical possibility of a school not being inspected for a very long time is not at all the same as that being likely? Does he also accept that the total basket of performance indicators that will be available under the new system will give much more richness, and a greater ability to identify the appropriate times to make such interventions?

Kevin Brennan: There are lots of indicators now, but we need triggers to make inspections happen at the appropriate time. We have sought to achieve that throughout the Bill. Given the seriousness of the step that the Government are taking, and the lack of consultation on this proposal, it should at least be the subject of the affirmative resolution procedure the first time that it is put in place. To that effect, we have tabled amendment (a)
	and the related amendment (b) to Lords amendment 27. We feel very strongly that if the Secretary of State is not going to provide us with any more triggers at this stage, he should at least have to come forward with an affirmative resolution the first time such a provision is enacted. We also think there should be a time limit on the provision. Amendment (b) to Lords amendment 27 would mean that exemptions could hold for only seven years, so the Government would be required to renew regulations at least every seven years.
	I do not want to detain the House for much longer, but let me make a few quick points about some of the other amendments that the Government made in the Lords, particularly regarding direct payments for persons with special educational needs. On Lords amendment 37, which inserts measures after clause 71, can the Minister explain why the Government are bringing in direct payments in that way? We are generally supportive of the approach, but will he set out how parents can be helped to navigate the system and make the best choices for their children’s needs? Can he guarantee that the introduction of direct payments is not a smokescreen for cuts in services to persons and pupils with SEN? There is a great deal of concern across the House about making sure that pupils and young people with SEN are protected and that direct payments are not used as a smokescreen for cuts when they are introduced.
	On academies and issues relating to land, some of the amendments show the complexities of land issues in education. No doubt, the Government will have to amend the legislation in a year or so as more problems are thrown up, especially with the conversion policy, as more and more land that has hitherto been owned or managed for an institution that was established by a local authority is transferred out of public ownership and management. It is likely that where public resources have gone into developing and enhancing land, resources might fall permanently into the private sector. In effect, amendments 89 to 91 seem to mean that if an academy is established on private land, any public money that goes into the land or buildings on the land will remain in the private sector. Will the Minister confirm whether that interpretation is correct and will he explain to the House the effect of those amendments and why they are being introduced? Will he also explain the complexities regarding private finance initiatives and academies?

Graham Stuart: It is a pleasure to participate in the debate and to see so many members of the Bill Committee present. I know that a lot of effort has gone into improving the Bill and I am delighted that their noble lordships have made many constructive contributions. I am also delighted that Ministers have been prepared to listen—as, to be fair, they have throughout the process—and have made amendments accordingly.
	One issue that I raised in Committee concerned schools’ discretionary referral of teachers who have been sacked for misconduct. In the other place, Lord Hill said that we could be assured that all the most serious cases would be referred, and I would be grateful if the Minister could help me to understand how that will necessarily be the case if discretion lies with the school. I am happy to take an intervention now if he is able to give me that information, but if he is not I shall move on.
	Interim immediate barring orders will be in the hands of the Secretary of State for cases in which the concern is sufficiently great, and where someone can be referred, we are talking about a great sanction. Such sanctions are probably appropriate for teachers who have been, or who are suspected of having been, guilty of gross misconduct, but how do we ensure there is consistency? One can imagine a case in which two teachers have behaved in exactly the same way but in which one of them is let go by the school and that is it—they go off and their CV is doubtless marked and harmed but fundamentally they can carry on with their career—whereas another is referred upwards into the national machinery, which Ministers themselves accept is cumbersome and comes with heavy sanction. I am not yet entirely satisfied that there will be justice and equality of treatment in such circumstances, and I ask the Minister to respond to that point later.
	In respect of reporting restrictions, the shadow schools Minister is right to say that all of us who have focused on the provision have worried about its possible unintended consequences. We all recognise the vulnerability of teachers to malicious allegations, which can spread from chatter around the school yard to chatter around the community. If an allegation is formally made and appears in a newspaper, that can have a devastating effect on a teacher who might have dedicated their life to supporting and educating young people. All Committee members, and everyone to whom I have spoken on this issue, sympathise with the Government’s approach, but questions remain. The Newspaper Society submission may not have caused my views to undergo a complete U-turn, but it raised a lot of questions as to where this protection should stop. The Opposition suggested it should be extended to other teachers, and I have mentioned social workers. I have yet to grasp the point of principle that justifies limiting this provision to teachers alone, rather than its covering many other professions as well, which might result in the public losing their right to know what is going on.

Dan Rogerson: Does my hon. Friend agree that even if such allegations are not reported in the media, they may get out into the community and may influence head teachers when they make decisions about appointments? The operation of these provisions will therefore need to be examined after they are put in place.

Graham Stuart: I agree that we will have to keep a close eye on the provision, but I hope it does the job it is intended to do in a fair and just way, and we can give Ministers a great deal of credit for having listened to the debate in the Lords and for having come forward with amendments to ensure that it does, indeed, work in the fairest possible way.
	In respect of exemptions, there is an anomaly which I highlighted through an amendment in Committee. Further education lecturers and teachers in sixth-form colleges, who come under the same administrative banding of FE for these purposes, do not receive the same level of protection as schoolteachers. To reiterate the point made by the shadow Minister, a lecturer and a schoolteacher might be teaching the same people the same subject in the same kind of classroom, yet the lecturer will not have this protection while the schoolteacher will.

Kevin Brennan: Further, a school student might be attending an FE college as part of their school sixth-form studies, and the regulations would be different in those two institutions.

Graham Stuart: Yes, and Alison Wolf suggested in her report that more 14 to 16-year-olds should attend FE colleges, so this provision would affect them as well as 17 to 18-year-olds, for whom the provision might be less relevant. I hope Ministers will think about this anomaly and find a way of equalising the situation.
	The Government make what seems like a very reasonable case on strengthening Ofqual’s enforcement powers. Ofqual does not have as wide-ranging powers as other regulators, and there is a very quick step from its making requirements on awarding bodies to the nuclear option of removing their ability to provide awards at all. It therefore seems reasonable to have more moderate powers in the middle, such as the power to make fines, but this Government are committed not to following such easy logic unless there is a very strong—nay, an overwhelming—case for giving new powers to some non-governmental, unelected quango, such as Ofqual, so in an intervention I asked the Minister to make the case. He made a brave effort, as he always does, being a highly esteemed colleague and an excellent schools Minister, but he really did not make the case.
	We did not hear about the number of times that awarding bodies have deliberately flouted Ofqual’s requirements—that OCR, when required to do something by Ofqual, just ignored it, left it as long as possible and did it only if it felt like it; or that the lack of anything other than a nuclear button meant that OCR did not want to comply.
	Following this summer’s examination paper errors fiasco, no one was more embarrassed and determined to put it right than the awarding bodies. They collectively and individually felt that it was embarrassing, and they wanted to put it right as quickly as they could. The numbers were somewhat higher than in previous years, but the attention paid to them this year was rather greater than the increase in problems, and I know at least one case in which there was only one error in 100,000 questions.
	I want to see all such errors eliminated and to know that those bodies are straining every sinew to put the situation right, but I am not yet convinced that a fining regime, however conveniently it may fulfil the Prime Minister’s promise to do something about the situation, is the right approach.

Nick Gibb: rose —

Damian Hinds: rose —

Graham Stuart: I give way to the Minister.

Nick Gibb: The measure is about incentives. If a not-for-profit or commercial operation seeks to ensure that there are no errors, the exponential cost of ensuring that there are zero errors is a cost to that organisation, so the fining powers provide an equal and opposite cost to the organisations that do not incur those costs to do their best to eliminate errors. That is the purpose of the fining provisions.

Graham Stuart: I am grateful to the Minister for that comment. Perhaps he did mean what he just said, and it may be possible to create an examinations regime in which there are zero—no—mistakes, but the cost of examinations, which this Government inherited from the previous one, is already entirely outwith the value that those qualifications bring to this country. Our system is already over-reliant on examinations, and aspiring to zero errors—ever, in any examination question—will have a deleterious impact on their quality.
	Awarding bodies may seek to change the questions that they ask to make it less likely that they ever include an error, and, if the measure suggests that it is unacceptable for them ever to include an error in any examination question, it will be extraordinarily expensive and impact in all sorts of unintended ways.
	As Chairman of the Education Committee, I am not yet convinced that awarding bodies are so careless of quality, whatever the errors this summer, that we need such an incentive to make them improve. We need a balanced and proportionate approach, but I fear that the Minister’s words, suggesting that there should be zero errors ever, will lead to something quite different.

Damian Hinds: I wonder what level of error Japan, or the other strongest education systems in the world, are targeting. However, notwithstanding my hon. Friend’s point about the relatively small number of errors in this country, I wonder also whether he agrees that following those errors there is a problem with public confidence in examining bodies, and that, when it comes to qualifications, trust and confidence are absolutely all.

Graham Stuart: My hon. Friend makes my point for me: public confidence, particularly as far as a political party in power and a Prime Minister who wants to be seen to be doing something are concerned, is all, so they have come forward, as the previous Government did all too often, with a legislative response to something that needs no such response, and on the basis of no proper or considered analysis of the situation. We had 13 years of vast increase in legislative provision, but very little increase in public confidence, so I say, “Don’t stick it in a law because it looks good in this week’s papers; actually think for the long term.” If we had done so, we might not have introduced this provision.

Richard Fuller: Many of us have strained to have zero errors in exams. I note you achieved that on many occasions, Mr Deputy Speaker, but it is a strain for the rest of us. We therefore understand the difficulties faced by the bodies that are setting exams in reaching that accomplishment. However, I am listening intently to my hon. Friend. Does he agree that the Lords amendments could have an inverse consequence? If we set a cost for the errors made, we will essentially replace a self-correcting mechanism whereby bodies seek to achieve the highest levels because of the risk to their reputation, with a mechanism whereby the errors made are considered to be a part of the cost of doing business. That stick will end up with someone saying, “Well, if we make three or four errors, we can afford it—we’ll get away with it.” However, nothing can reimburse an organisation that has lost its reputation.

Graham Stuart: I am grateful to my hon. Friend for making my point both more succinctly and fluently that I was.
	The Government may not necessarily be wrong, but we have not heard the argument. There are many awarding bodies in this country, and perhaps some have flouted and ignored Ofqual’s requirements because they can afford to do so as a cost of doing business. If there is such a case, we need to introduce the sanctions to bring those bodies into line and ensure that public confidence and quality is delivered. However, I have not heard that argument; I have only heard arguments about public confidence. As I say, that does not seem a good reason to legislate.
	The explanatory notes state:
	“Subsection (5) of the new clause would insert into ASCLA 2009”—
	the Apprenticeships, Skills, Children and Learning Act—
	“new sections 152A to 152C which confer on Ofqual the power to require a recognised body on which a sanction has been imposed to pay the costs incurred by Ofqual in relation to imposing the sanction.”
	So those bodies have to pay not only the sanction, but the costs related to the sanction. I may be a bit of a cynic about quangos, but if they see a way of buttressing their income, their number of employees and their powers, and they can get someone else to pay for it, I suggest that they will be more inclined to go down that road. I do not want such bodies doing overstretch.
	The explanatory notes go on to state:
	“The costs concerned would include the costs of carrying out an investigation”—
	ooh! you can’t be too careful there—and doubtless those bodies would want to get quite a lot of people involved. The explanatory notes then refer to “relevant administration costs”—load on a bit more for that—
	“and the costs of obtaining expert advice.”
	This is an open, blank cheque to Ofqual to impose charges on awarding bodies if it sees fit to do so. Personally, I would like non-elected quangos kept on a fairly strict and short rein unless it is appropriate to do otherwise.

Richard Fuller: My hon. Friend has already alerted the House to the risk that the Lords amendments will result in the examination bodies treating accuracy as a cost of doing business. He is now alerting us to the risk that that may be an open-ended cost of doing business. Does he agree that the risk of the amendments is that we are replacing a self-correcting mechanism with a bureaucratic structure that has unlimited costs to the examination bodies?

Graham Stuart: The measures seem terribly redolent of provisions I saw in the House during the previous Parliament. I had hoped to see fewer such measures in this Parliament. My hon. Friend is right: we believe in creating the right framework and allowing the incentives within that to do their work. As far as awarding bodies are concerned, those incentives are correctly framed and their incentive to do the right thing is right. If Ofqual feels in the future that those bodies are paying insufficient attention to reducing errors in examinations, it will be able to say so. If awarding bodies then fail to comply with the direction suggested by Ofqual, that is the time to come here and discuss the matter. Ministers would be able to give instance after instance where awarding bodies had failed to act on the very clear and reasonable directions given to it by Ofqual.

Louise Mensch: I am fascinated by my hon. Friend’s speech. I understand that he feels zero errors is too high a threshold, but will he tell the House if he thinks there is an acceptable level of errors that Ofqual might be able to specify, or is he uncomfortable with labelling any level of errors as unacceptable?

Graham Stuart: Conservative Members have found that artificial targets led to precisely the kind of mechanistic, cost-of-business approach that my hon. Friend speaks about so well. That is why we set up a body of experts like Ofqual to work within a framework, also established, of different awarding bodies wherein together they come up with the right approach. I am not sure that it is necessarily right to set a percentage. If there were a consistent period in which the awarding bodies showed themselves to be careless, or if we found on international comparison that ours were not up to scratch compared with those elsewhere—whatever the aspiration of the Japanese examination system, I doubt that it delivers 100% accuracy in all exams—it would be better if we trusted Ofqual to work with them without necessarily bringing more bureaucratic sanctions into the process. Given the terms of subsection (5) of the new clause, there seems to be little incentive for Ofqual to control the costs of this, and it may simply add further to the expense of our qualifications system.

Stephen McPartland: These awarding bodies are very large businesses; I believe that the largest is worth about a quarter of a billion pounds. Does my hon. Friend agree that they no doubt have legal insurance that would meet the cost of these interventions?

Graham Stuart: That may well be the case, but if they do have such insurance, the premium will reflect the cost of doing businesses. In all contexts, whenever anyone suggests that having insurance somehow means that there is not a problem, it usually means that there is a broad raising of costs across the piece, which is something that we should minimise. One of the changes that was made in the Lords and has now come before us recognises that some education awarding bodies are part of educational companies globally, that there should be a cap on how much they can be fined, and that that cap should be relevant to the amount of business that that organisation does in this country rather than in global operations. That is welcome.
	We now have a repeal of the repeal of the duty to co-operate. The shadow Minister was right to say that we are glad to hear confirmation that this partnership working can continue. I am also glad to hear from the Minister, citing his noble Friend Lord Hill, that the Government are committed to that form of partnership. In all the high-profile cases, and others, of children who are found to be neglected, it turns out that people at the agencies have not talked to each other, and we need to ensure that they do. It may be possible that a particular duty to co-operate in a certain way leads to a mechanistic response. If there is another way of framing the whole conversation that encourages it without there being a bureaucratic or legislative solution, that is something that I would be open to, but until we have a convincing argument as to how the overall picture will work, it is a good thing that schools co-operate with the other bodies.
	On admissions, we have the change whereby anyone can refer a case to the regulator. I assume that the impact assessment has taken account of this, but I would be grateful if the Minister could comment on that. If anyone can refer to the regulator on admissions, how many more referrals do we expect? If other hon. Members’ caseloads are anything like mine, they will know that an awful lot of parents are concerned about admission arrangements and many of them go through the appeals process. I wonder how many would seek to question and make complaints to the admissions regulator using the power in the Bill.
	Again referring back to the remarks of the shadow Minister, can the Minister give the House a reassurance on the time frame for an admissions body to correct itself? Is it really possible that we could have a 10-month delay? One of the dangers in this place is that so many Members are so high-minded. The Minister is one of the most high-minded, and there is a tendency to assume that all others in the system share his ethics, commitment and fairness. Perhaps I have led the wrong life, but I have met many people who are capable of spite. It would seem to me a mistake to have a system that allowed somebody who had appealed and won to be thwarted in an act of spite by a school because it could use the rules to avoid acting in time to provide justice to the person who had brought the complaint.
	On Ofsted inspections, as I said earlier, I welcome the Government’s proportionate approach. I would be grateful if the Minister talked us through the implications of the reduction in Ofsted’s budget. Perhaps surprisingly for some Government Members, the previous Government brought in pretty strong reductions in Ofsted’s budget. It is greatly to the credit of the then chief inspector that Ofsted coped with that without a discernible drop in quality. The budget is now going down even further—from well over £200 million, it is dropping to about £143 million, from memory. I am interested to know how that will impact on Ofsted’s ability to provide inspections.
	The noble Lord Hill said in the other place that 72 outstanding schools had had inspections triggered by Ofsted’s risk assessment process. That meant that about 2% of outstanding schools had been inspected in the period. He said that it had been agreed with Ofsted that the aim should be to inspect at least 5% of outstanding schools. I wonder how able Ofsted will be to deliver that 250% increase in workload just in the area of outstanding schools.
	In winding-up, the Minister might also like to comment on primary schools, because all schools are not the same. It has always been of concern to me, when talking about greater autonomy and academies, that primary schools are fundamentally more fragile than secondaries. The departure of a head or a chair of governors, both of whom might contribute to a school being outstanding, can lead very quickly to a school’s standards falling. I would like a reassurance that there are different approaches for primaries and secondaries, for example in the speed of reaction and the attention given to certain factors, such as a change of head at a primary school being given greater weight and being seen as more of a trigger to get Ofsted to come in and check that all is well.
	With those remarks, I will leave it there. I hope that the Minister will respond in due course.

Elizabeth Truss: I will speak to Lords amendments 18 and 19 on the duty of schools to co-operate.
	It is important that we have a framework that delivers competition and choice in rural areas. There have been many examples of innovation in my constituency in which schools have co-operated to provide a better service across disparate and sparse rural areas. Methwold high school in my constituency operates a vertically integrated model with Hockwold primary school. It has been able to save on administration costs and to run the school more efficiently. It offers GCSEs in subjects such as maths to local adults, thereby lowering its costs and offering a wider service. It also collaborates with further education and higher education establishments to offer local people degrees and other qualifications that they would not normally be able to access in such a remote area.
	Another school in my constituency, Swaffham Hamond’s high school, was regrettably unable to continue to offer A-levels last year due to the lack of local demand. Unfortunately, students from that school were obliged to travel for up to 45 minutes on local buses to go to King’s Lynn to study their A-level choices. Since then, a local collaboration programme has been developed with Dereham school, which has been able to offer its A-levels at Swaffham Hamond’s, ensuring that specialist teaching staff are used in the best way possible.
	The raw economics of life in a very sparsely populated area mean that it is often more efficient and effective for specialist teachers to travel between schools than for students to travel vast distances from one school to another. That is what the head teachers of Swaffham and Dereham have achieved. They have ensured that the best sixth-form provision is available across a network of rural schools. That was a highly rational decision, but to get to the point of being able to offer that service they had to go through a whole load of bureaucracy. I know that the county council was involved in trying to sort that out, but ultimately the school from Dereham that offered its provision to Swaffham, a good 20-minute drive away, had to take a huge risk due to how the Young People’s Learning Agency funding worked. A very innovative offering was available in a rural area, but schools struggled to put it in place because the funding models were more suited to large conurbations.
	I am a huge supporter of academies and free schools, and I was very grateful to the Secretary of State for visiting Thetford academy, in my constituency, a couple of weeks ago. At present, however, the model delivers better for larger conurbations than for disparate areas. We need to find a way of making the funding more flexible, so that it can apply in remote rural areas and so that there is some pressure on failure and success in areas where it is very difficult for students to travel a long distance to a different school. We need to find a way of ensuring that failures are dealt with quickly and that success is rewarded, so that bad provision can be replaced and good provision can expand not just within a geographical location but elsewhere locally.
	Norfolk schools are showing how collaboration should be done, but we need a way in which competition and collaboration can work alongside each other to ensure that we get the best economic models, that we use our teaching resources in the best possible ways and that we see innovation within the current environment.

Richard Fuller: I appreciate the opportunity to speak to the Lords amendments. I welcome the fact that in their lordships’ overall assessment, the main thrust of the Bill should pass through to Royal Assent. It is most welcome that the core objectives of what the Government are trying to achieve will make it into law. That will be welcomed in rural constituencies, as my hon. Friend the Member for South West Norfolk (Elizabeth Truss) mentioned, and in others. However, the Lords have made some suggestions, which my hon. Friend the Minister indicated that the Government would support. I would like to draw his attention to a couple of those suggestions with which I concur wholeheartedly, and others with which I concur partly.
	My first point is about the Lords’ reinstatement of the duty on schools to co-operate with local authorities, which is specifically related to the well-being of children. That relates to the broader issue of how the new schools that are envisaged, and the ones that are already in place across the country, will co-operate with local authorities. Much attention has been given in the Bill’s earlier stages in the Commons to the responsibilities of schools with regard to local authorities, but as my hon. Friend the Minister knows, I often look at the matter through the other end of the lens and ask what is the responsibility of the local authority to co-operate with our schools.
	I, and I think many Government Members, hoped that when the noble Lords considered that duty to co-operate, they might send the Bill back to this House with amendments that were somewhat more creative than simply placing into the Bill the original duty as it already stands.
	Throughout our country, we are seeing a radical change in the relationship between local authorities and schools. Schools are gathering greater freedoms to operate independently. Those relate to not only financial status, but areas of operations, one of the most important being admissions policies, which I will come to. That liberalisation of the market for schools—if I can call it a market for schools—is very welcome, but as a consequence of those freedoms, new issues come up, such as how schools work together on behalf of their local community, and how in doing so, both as individual schools, in pyramids of schools or chain academies, they interact with local authorities, which are the democratically elected bodies in those areas.
	In many cases, those relationships have been conducted positively in the past, but there is sometimes a contradiction between the schools’ best interests and those of local authorities. In that respect, it is a shame that the noble Lords have not sought to move the debate on the duty to co-operate forward to take us to the next stage of understanding. When the control over the education of our children is in the hands of such independent bodies, what will be the duty to co-operate between local authorities and schools?

Kevin Brennan: Does the hon. Gentleman agree that the duty to co-operate is not about the interests of schools or local authorities, but about the paramount interests of the child, which remain whatever school structures this Government put in place?

Richard Fuller: The hon. Gentleman is, as he has been throughout this process, a source of extreme insight and has expanded my knowledge. He is absolutely right
	that that is the key aspect. As he knows from deliberations in Committee, all Members on both sides of the House have sought to achieve that.
	To the extent that it is not the structure that matters but the education of children, the hon. Gentleman is correct. However, the Bill is not a nudge along for the structure of our educational institutions but a more substantial change. I am therefore expressing the retrospective wish that their noble Lords had been somewhat more adventurous in defining some of the new scopes for duties to co-operate in their amendments. Had they done so, the goal of focusing on the education of our children, which the hon. Gentleman and I share with other hon. Members, including the Minister, could have been moved forward a little. My current concern is that there could be turf battles about who is responsible for what in the duty to co-operate.

Stephen McPartland: Can my hon. Friend give us examples of the local authority paying lip service to co-operating with the school when it did not want to co-operate in practice?

Richard Fuller: I appreciate the incentive that my hon. Friend gives me to talk about local issues—there are examples in the borough of Bedford and more generally—but he recognises that the duty to co-operate involves questions such as the ownership of land and buildings. In addition, my local authority has a somewhat confused educational structure. There is a mix of two tier and three tier, and sometimes there is both in the same place at the same time. In those circumstances, when schools wish to pursue becoming an academy, there is potential for a difference of opinion on the best interests of children. A school being subject to a requirement to co-operate with the local authority on the basis of the local authority’s responsibilities does not facilitate the growing liberalisation of schools to determine their futures that we wish to see. There is potential for conflict, but I hope that those examples have helped my hon. Friend.

Elizabeth Truss: Does my hon. Friend agree that some local authorities, such as Norfolk county council, have taken a positive approach towards academies, and are helping schools to become academies and to link up? Local authorities can play a positive role if they have the right attitude towards what that role should be.

Richard Fuller: I appreciate my hon. Friend’s intervention, although with respect, I will stick tightly to the Lords amendments on this issue. She gives another example of how the duty on schools and local authorities to co-operate has evolved. Given that their noble Lords went so far in putting that duty back in the Bill, may I encourage the Minister and his ministerial colleagues to think further and more deeply about the evolving landscape and what that is likely to mean over the coming years?
	I thank the hon. Member for Cardiff West (Kevin Brennan) for his comments about school admissions, which many of us share, and I thank the Minister for the changes that have been proposed or made. If we wish to see a substantial change and more liberalisation of schools in terms of where the authority lies, we
	should be aware that most families and parents want schools’ admissions policies to be clear and fair in their communities. That does not necessarily mean that they have to be uniform, although many of us would indeed hope to see uniform entrance policies, particularly with free schools, because that would reinforce the success of this new idea and new policy. I therefore very much welcome Lords amendments 20 and 21. I have listened to different points of view on free schools, and I know that support for this radical idea among Opposition Members has been “on again/off again”. Indeed, it would be interesting to know whether those on the Opposition Front Bench are “on” today or “off”.

Graham Stuart: Which one is on and which one is off?

Richard Fuller: Indeed. I will happily listen to the hon. Member for Cardiff West if he wishes to—[ Interruption. ] I can see that those on the Opposition Front Bench are not quite sure whether they are on or off, or on the fence.

Stephen Twigg: That is not within the scope of this debate.

Richard Fuller: I appreciate what the hon. Gentleman says from a sedentary position, although I am sure that you would rule on whether it was within the scope of this debate, Mr Deputy Speaker.
	Whatever the Opposition’s position, Government Members fully support the moves towards free schools. However, for the idea to bed in and become successful, schools’ admissions policies need to be clearly defined, otherwise they will potentially be an Achilles heel. Organisations opposed to free schools—some have honourable intent, although some are the dinosaurs of an old regime—have pointed to admissions policies, saying that they will somehow be unfair. Those criticisms, from those organisations, have often flown in the face of the facts. Those facts show that admissions policies have often been just cut and pasted from other local schools. These Lords amendments will give reassurance on those criticisms, so that the reformist voices on the Opposition Benches can be encouraged further to recognise that there is a path forward and that this can be part of the most reforming legislation for some of the most disadvantaged children in our country. Therefore, Lords amendments 20 and 21 are most welcome.
	I would like to talk about some of the comments made about direct, individual budgets for children with special educational needs, a topic of great interest in Committee when it came to ensuring that the reforms moved forward the provision of education for some of the most vulnerable children and young adults in our communities. Although in principle I am a supporter of individual budgets, both in this area and in others, I am somewhat sceptical about full implementation. It is interesting to note two parts of what Lord Hill said in the debate on the amendments dealing with personal budgets in the other place, when he referred, first, to
	“control over the support they receive and better access to and greater satisfaction with services.”
	I want to return to better access later. Secondly, he said:
	“In those individual budget pilots, nearly two-thirds of families opted to have a direct payment as part of their personal budget.”—[Official Report, House of Lords, 1 November 2011; Vol. 731, c. 1195.]
	People’s attention rightly focuses on those two thirds, which comprise the earlier adopters and those who can be encouraged relatively easily to follow on.
	For this policy to work effectively, however, the concentration of hon. Members here should not be on the two thirds who accepted but on the reasons why one third did not. What is holding back these individuals from taking on the responsibilities of individual budgets? The benefits have been extolled quite broadly and it would be interesting to understand why those one third of individuals have not taken that view. My guess is that there will be more of an issue with this policy from people who are reluctant adopters and we will need to work through how to enable them to have the benefits from individual budgets.

Graham Stuart: I am perhaps more optimistic than my hon. Friend. Historically, we have not had direct budgets in this area. As more people receive direct budgets, those who provide in response to them will grow in their sophistication and capability, so they will be able better to sell, communicate and market what they do for families, who will then see that they can take on a budget without having to try to commission those services from scratch themselves. My hon. Friend is right—although things might develop over time—that this might never be appropriate for some people and we must ensure that we look after their interests. However, for perhaps even more than 75%, direct budgets might prove to be the way forward.

Richard Fuller: I appreciate my hon. Friend’s intervention. As Chairman of the Select Committee, he is very knowledgeable in this area, and I look forward to discussing the issue with him further. Let me add a couple of additional concerns. Although we agree on the overall direction of travel, we might also reach some concordance over concerns.
	The proposal in Lords amendment 37 is to deal with this issue through setting up pilot schemes in some areas. I am in favour of that. What will be the benefit for children with special educational needs? Their parents already put an enormous amount of effort into supporting their children. We call on them not only to go out and work hard, but to provide that support at home and that takes up an enormous amount of time. To place on top of that the burden of an individual budget—however it is implemented—places significant additional burdens. Let me explain a couple of them.
	I have spoken to parents of children with special educational needs in my constituency. Overall, they are enthusiastic about some of the proposals in the Government’s Green Paper, but they strongly voiced their concern about the complexity of placing additional burdens on parents. They want these responsibilities, but the complexity involved is significant.

Nick Gibb: It will not be compulsory to have a direct payment. It will be an option that parents can take up if they wish. The fears that my hon. Friend expresses should not come to pass.

Richard Fuller: I appreciate the Minister’s intervention, which reassures me somewhat, but Lords amendment 37, on setting up pilot schemes, reassures me more significantly. I think we will find that more significant issues arise here. It is not sufficient, from my point of view, to say that because two thirds will accept it, it must be fine. Two thirds might well accept it, but that does not mean that the administrative problems and complexities will not have made their lives more complicated. People might say, “Yes, I will accept it”, but it is not a straight choice leading to the accrual of untold benefits. There are costs and consequences from the decision made.
	As I was saying, I spoke to some parents in my constituency and they told me that they wanted a system that was easy to administer and wanted to ensure that support was available. They wanted to ensure, too—this was a point raised by the hon. Member for Cardiff West and others—that this was not an avenue to cost cutting. They wanted to make sure that Ministers understood the complexities of handling different panels, facing different options on statementing and having to look for disability living allowance, carer’s allowance and so forth. Those are costs placed on individuals. Two thirds might well say, “This is what we want to do”. That, however, with respect to the Minister, is not the point. The point is to make the system so simple and easy to do that everyone wishes to do it. I am not sure that we are at that point yet, which is why I welcome the proposal for the pilot schemes in Lords amendment 37.
	My other reason for welcoming the amendment is that, as I have said, I do not want a measure that constitutes an avenue to cost-cutting. I accept that the Minister and his colleagues in the Department are absolutely committed to maintaining support and funding for the most vulnerable children, but in the present environment, every good policy can be open to talk of cuts and reductions. We hear such talk almost hourly from Opposition Members, in relation to a range of topics. Some may have valid points to make, but it is generally understood that those who have borrowed too much money and are living beyond their means have to make cuts in certain areas.
	It would be devastating for the Government if the strong reforms that they want to make in regard to special educational needs, building on what the last Government did, became part of the debate about cuts. We can learn from a pilot scheme, and it will enable us to create a better system. Its mission should be to relieve parents of the burden of additional complexity. We should focus not on the take-up rate, but on reducing the cost to parents of individual budgets. That will help to ensure that the changes that are made bed down for the long term.
	Having commented on those three issues—the duty to co-operate in a changing environment, the need to ensure that school admissions do not become the Achilles heel of the move towards new academies and free schools, and the need to reduce the complexity of special educational needs individual budgets for the benefit of parents—I offer my support for the amendments.

Neil Carmichael: I want to talk about five aspects of the amendments. The first is the question of Ofqual. I disagree with my hon. Friend the Member for Beverley and Holderness (Mr Stuart), the Chairman of the Education Committee, about the
	fines. [Hon. Members: “Surely not!”] He is fairly used to disagreements, and always accepts them cheerfully, as he has just demonstrated.
	The Government are right to think in terms of fines. My hon. Friend the Member for East Hampshire (Damian Hinds) put his finger on it when he noted that it was difficult to change examination boards in a timely manner if there were mistakes. There must be no mistakes in the preparation of exams.
	The real problem, it seems to me, is that we have far too many examination boards, and I believe that the Education Committee will consider that in due course. We need accurate examinations so that students can feel confident that they are taking tests that are fair, proper and competent, and fines should be applied when those priorities are not honoured.
	There is the important question of whether Ofsted should inspect outstanding schools. We must ensure that it concentrates on schools that are failing or coasting: as the Prime Minister rightly says, we must never fail to recognise that some schools are not doing a good enough job at present, and that they require our full attention. An Ofsted report is, of course, a snapshot of the situation that the Ofsted inspectors found during their visit, and is likely to convey contradictory messages. What I frequently find in my constituency, and certainly found when I was involved in education as a governor, is that such reports may not tell the story that other statistical evidence might tell.
	I raised the problem when the Education Committee was considering Ofsted and its future. I asked witnesses what should be done when a school that is able to brandish very good exam results—five passes graded between A-star and C—receives an Ofsted report that tells a different tale. I know of two schools in my constituency that have been able to counter one bit of evidence with another, and both cases involved Ofsted reports. I therefore think that the Government are right to use the tool of Ofsted to focus more on the schools that are failing or coasting.
	There are many different ways of measuring performance. We must enable parents to see, from year to year, that things are moving in the right direction in the schools that they choose—or may choose in the future—for their children. An annual assessment will be helped by effective league tables and the right kind of evidence presented in the right way.

Graham Stuart: Is my hon. Friend comfortable with the idea that some schools might not be inspected for 10 or 12 years?

Neil Carmichael: I would certainly be willing to see schools go without an Ofsted inspection for some time if they are consistently performing effectively and efficiently. Several years might elapse before an inspection, but I do not believe that we are talking of decades.
	We must bear it in mind that there are other accountability mechanisms: the choice that parents make; the measurements that league tables offer; and the role of governors. I know that the hon. Member for Cardiff West (Kevin Brennan) is not going to press the issue to a Division, but I consider it very important, and I think that the Government are right to be less prescriptive
	than they have been in the past. It is critical that we focus on what governing bodies should be, and on the role that they should have.
	I have been involved in the establishment of an all-party parliamentary group on school governors, because I think that the issue has been overlooked for far too long. One of the key themes that the APPG is developing is the need to focus on skills rather than representatives of governing bodies, and it is reflected in both the Bill and the amendment. It is obvious to me, and, I believe, to most people—it was certainly obvious to all who were involved in the formation of the APPG—that a great many skills are required. It is a good idea to ensure that a local authority appoints a governor in consultation with the governing body, so that together they can come up with the right person to fill the skills gap. The school will then have a governing body that reflects its priorities and has the appropriate skills. I am glad that the Bill mentions the crucial role of governors, on whom I think we should turn the spotlight when we think about accountability.
	That brings me to the question of reporting restrictions. Over 20 years, I have been involved in situations in which members of the teaching profession have had to undergo disciplinary procedures. Ironically, none has been connected with pupils, and I am pleased about that, but I could have done with a few reporting restrictions in one instance in particular. It is very difficult to manage such situations when they are being second-guessed by the press, which may investigate or discuss them in ways that are not helpful to the requirement that evidence is presented fairly and honourably so that people who are not involved in a case can make proper judgments and reach an unbiased conclusion. I discovered that if someone wants to get something published, they should simply mark it “private and confidential” and away it will go. It is right that the Bill examines this issue, because we have to ensure that our processes can be properly managed and controlled so that investigations can be undertaken and judgments made consistent with justice and good practice.
	Finally, I wish to talk about the key duty to co-operate. In the Localism Bill the Government readily accept that authorities should co-operate with each other on a wide range of subjects. That is the right approach, because planning decisions, highway construction and so on are more effective when people co-operate, and the same applies to local authorities. To be consistent, the same must apply in dealing with schools and local authorities, although perhaps we need to be even more focused on the need to co-operate because schools benefit from co-operating on a host of things. As we move towards academies, free schools and choice, we should talk not about a federal structure for schools but about encouraging feeder schools to get more involved with secondary schools and providing similar support for special educational needs. As the shadow Minister rightly noted, the key is to think about pupils and their best interests. We should try to engineer a system under which there is an overall desire to co-operate, where co-operation takes place and where schools feel comfortable co-operating with each other. In broad terms—and in absolute terms, because I cannot think of any criticism I am really making here—I support the amendments, as the Government have expressed them.
	I wish to emphasise some key points. First, we need to acknowledge and celebrate the work of governors and the importance of school governance. If we get that right, accountability will be appropriate and understood, and parents will feel increasingly comfortable with the overall structure of school leadership and management.
	I have not mentioned the second point, but it is crucial. When money starts to go to schools not necessarily through local authorities but directly from the Department for Education, we will have an even more flexible, fluid way of dealing with schools that will produce excellent schools. But we can never take our foot off the accelerator in the drive to ensure that all our schools do the best they can for their pupils and that their pupils thrive. That is our message, and that is what we must do. The Bill will go a long way towards helping that to happen.

Damian Hinds: I wish briefly to discuss a couple of aspects of the amendments, touching on Ofsted and outstanding schools, the anonymity of teachers and Ofqual. I wish to start where my hon. Friend the Member for Stroud (Neil Carmichael) so eloquently left off: on the duty to co-operate. I agree wholeheartedly that we should celebrate co-operation, teamwork, playing to strengths and so on. I accept that the Government think it necessary to retain the duty to co-operate, as was, but I hope the Minister will agree that it is not always best to systematise and design processes; free co-operation can frequently be more effective.
	In a different but closely connected arena, the Select Committee, on which I sit and of which my hon. Friend the Member for Beverley and Holderness (Mr Stuart) is Chair, is examining the broader issue of child protection. In that area, the number of flow charts, systems, fall-back plans and required times by which something must happen provide what appears to be a very impressive system, but in many ways more questions are created than are answered.
	There is much to be gained from schools co-operating, so that we get more than the sum of the parts. The education improvement partnership in my constituency brings together all 44 schools—nobody forced them, and it was not the result of any duty—to work on a range of things, including the gifted and talented programmes; the provision of pupil referral units; nurture for primary children at risk of exclusion; and training for emotional literacy support assistants. That makes the biggest difference.
	The second thing I wish to talk about is Ofsted, outstanding schools and triggers. I accept that there is an honest and reasonable difference between the parties on this, which reflects a difference that we see on lots of subjects. Labour Members would like codified exactly what will trigger the re-inspection of a school previously judged to be outstanding, whereas Ministers are keen to think of a range of things that might make that happen but do not wish to be quite so specific and accept that, to an extent, the system is organic. The Select Committee closely examined whether a change of head should automatically trigger a re-inspection. I think that there is a strong argument to say that such a big personnel change, perhaps when combined with one or two other changes, might be a good reason for so doing, but there might be counterbalancing arguments against.

Graham Stuart: I am glad to say that Lord Hill said that he and Sir Michael Wilshaw—I think he specifically named him—believed that changing a head would not automatically trigger an inspection but would trigger consideration. The Government and Ofsted are aligned with my hon. Friend on this requirement.

Damian Hinds: That highlights the point about having people running organisations whom we trust and who can make professional judgments, and about their weighing all the evidence and not being hidebound by particular formulae.
	In an earlier intervention, I mentioned that we will have much richer data than ever before in the schools system. That is not unique to this country, because a revolution is going on in the education world, as was reported a few weeks ago in a good article in The Economist. We know much more about schools and can therefore do much more predictive modelling than was possible before.
	In an intervention, my hon. Friend the Member for Bradford East (Mr Ward) argued in favour of contextual value added. The Government will not use CVA—and thank God for that; I have yet to meet anyone who understands it. I have served on the Education Committee for 18 months and we are still waiting for our first teacher, head teacher, pupil, local authority officer or anyone else from the education establishment to talk voluntarily about CVA as a measure of school performance. Instead, we have what most people would understand as a value-added measure—progress from key stage 2 to key stage 4—which will do most of that job without the extra complexity and formulaic high jinks that the contextual bit introduces. Of course, it is only one of a large basket of measures and indicators that can be used.
	I am sure that it is not in the minds of Ministers or the leadership of Ofsted that any school should go a long time without inspection. I would be amazed if any head teacher wanted to go long without his school being inspected. Many of the indicators are what we might call “digital indicators”, but Ofsted produces an analogue report with much richer evaluation and comment than some of those measures. I am sure that many parents will want to know that there is a relatively recent report informing them about some of the things that they cannot necessarily read in league tables, but I do not think that any of that calls necessarily for the formulaic approach of automatic triggers that Labour Members suggest.
	The next area I want to touch on is the anonymity of teachers. Reasonable questions have been asked about why schoolteachers should enjoy special treatment, and why those who work in further education colleges are treated differently. I accept that that is an anomaly, although it is hardly the first anomaly to arise between secondary schools and sixth-form colleges.

Graham Stuart: The Government listened and used the Bill to correct an anomaly and allow FE teachers to teach in schools. I led a debate in January and am delighted that Ministers listened to that appeal and are seeking other ways of levelling the playing field for FE and sixth-form colleges and schools.

Damian Hinds: Indeed. As ever, my hon. Friend makes a pertinent point.
	Teachers are unique—there is something special about them, as opposed even to other people working with children, although I accept the arguments about them—as they have to stand before a class, in a position of authority, and keep discipline. Most of us will have been struck by the number of teachers whom we know who strongly approve of the change introducing anonymity. For the avoidance of doubt, let me say that those teachers would never in a million years get up to the sort of no good that we want to avoid. There is something symbolic in saying that we understand their difficult position in keeping order in their little community and that they deserve our support and this type of anonymity.
	Ofqual has already stimulated some fascinating exchanges. In an intervention on my hon. Friend the Member for Beverley and Holderness, who chairs the Committee on which I serve, I wondered what level of defect the Japanese would look for. I specifically picked Japan, rather than Shanghai, Finland or any of the popular examples because of my experience of joining the Manchester and Merseyside branch of IBM as a tender 17-year-old. The story new starters were told might have been apocryphal, but it was that that IBM specified a 99.99% success rate in the contract with its Japanese microchip supplier. The Japanese were a bit confused, but dutifully smashed one in every 10,000 chips to ensure that they complied with the rate. The point is that other systems do things better than ours does and that people with other systems accept nothing but the best. Following that experience, IBM adopted the principle that is known in business as zero defects.

Graham Stuart: Will my hon. Friend give way?

Damian Hinds: Only if my hon. Friend will speak in Japanese.

Graham Stuart: Double Dutch perhaps, but not Japanese.
	My hon. Friend asserts that other areas do better than we do—in the accuracy of their examination questions, I assume —but does he have any evidence to back that up? The paucity of such evidence from Ministers makes me question whether we have made the case to introduce such measures.

Damian Hinds: I suspect that my hon. Friend knows that my point was a more general one about other people doing better than we do and about their tolerance of failure and imperfection. I recognise that humanity is ultimately susceptible to failure, but I worry about what we should accept.

Richard Fuller: Does my hon. Friend agree that one of the main reasons the Japanese do so well in business is not sticks and penalties but their cultural acceptance of what they need to do?

Damian Hinds: I thoroughly accept that point, but we need to ensure that our education system strives to be as good as the best in the world. Ministers are effectively leading the education system in that mission.
	I said earlier that public confidence is everything. I accept that the brand equity that examination bodies want to protect is the single biggest motivator to be as
	good as they can be, but it is worth reiterating that this is not a simple market in which they lose customers if they get something wrong. First, the number of exam-awarding bodies is limited—people do not have limitless choice. Secondly, schools that switch examination bodies face major costs, inconvenience and difficulty in changing curriculums. Thirdly, given the costs and difficulties involved, changes might not be as easy as they appear for schools and colleges.
	Instead of thinking about whether there are one in 1,000, one in 10,000 or one in 100,000 defects, we should think about the time a student sitting a exam might waste in trying to answer a question that is impossible to answer correctly. That exam, although one of the 10 subjects they are studying, might be fundamental to their future.
	It is reasonable to set a fine with a cap of 10%—a pretty standard benchmark—applying only to the part of the operation that Ofqual regulates, not to the international fees. Of course, it will be subject to a 12-week consultation.
	My hon. Friend the Member for Beverley and Holderness said that such fines could add, either directly or via insurance premiums, to the costs of examination bodies and, therefore, to schools. We must address the fact that the costs of examinations to schools have risen dramatically. In 2002-03, the average maintained secondary school spent £44,000 on public examinations. By 2008-09, the figure had increased to £85,000—all but doubling in a mere six years. I think that it increased to £96,000 in 2009-10. Those massive increases are nothing to do with having to pay fines for getting the questions wrong; they are to do with the number of resits, retakes and AS-levels and all the additional stuff that goes into our examination system.
	I am pleased that the Education Committee will consider how the examination board system works, but, as the Minister said, there is an ever-greater cost to getting 99.99% accuracy up to 100%. We shall create the incentive to go the extra mile by ensuring that, if people fail, there is a counterbalancing cost. It is absolutely right that that is being done. I am happy to support the Lords amendments.

Dan Rogerson: I rise to support a number of the Lords amendments that were made in another place at the prompting of the Government, although as the hon. Member for Cardiff West (Kevin Brennan) said, a number of the issues were explored in Committee before the Bill passed to the other end of the building.
	I am pleased that the Government have reconsidered the duty to co-operate. The hon. Member for East Hampshire (Damian Hinds) talked about the analogue process of inspection. Well, coalition government is an analogue process as well, and my noble Friends, along with Lord Laming, were keen that the issue, especially with regard to safeguarding, should remain on the statute book, because of the emerging relationship between local authorities and schools that will follow the transition in some parts of the country when large schools to take up the opportunities of the academies programme. The Secretary of State for Education has spoken in the past about the need to consider how local authorities and schools will work in that context. The Deputy Prime
	Minister mentioned in a speech in September that local authorities needed a new role in considering the education environment.
	Of course, fewer academy conversions have taken place in some parts of the country than in others. The process will take different forms in different parts of the country, but that is right and in accord with the principles of localism, as the hon. Member for Stroud (Neil Carmichael) said in his contribution. There will be opportunities to revisit the discussion about how schools and local authorities co-operate with regard to the objectives for wider community development and for education—of course, the key priority for schools—but it is clear that the Government, having considered the issue, wanted there to be no doubt at all about the message that goes out about safeguarding. On that key duty to operate on those issues, the Government have responded to the points made by Lord Laming and others, and I welcome that.
	On admissions, the debate in another place focused on the duty of the Secretary of State to provide fair access in all circumstances. Clearly, the Secretary of State has that duty, supported by the schools adjudicator, so that should set minds at rest. Where there have been anomalies, some are anecdotal. We hear, for example, that in the original academies lower numbers of pupils were on free school meals than at other schools in the area. That requires exploration. The pupil premium will have the effect of showing that all schools will benefit hugely from bringing in pupils from across the community and having the resources to provide any extra support that might be necessary early on in a student’s school career, to ensure that they get the benefit that everybody else enjoys as they move through the education system.
	I am grateful to the Minister and his noble Friend for the changes that they have made to the original proposals on school governance. The hon. Member for Stroud is no longer in his place. I should take the opportunity to attend his all-party group, which I have not done thus far. We on the Liberal Democrat Benches are a little more convinced of the benefits of the stakeholder model. I entirely understand what the hon. Gentleman was saying with regard to skills. The model advanced by the Minister through the amendments made in another place provides the opportunity for co-option and for discussion with the local authority about the sort of person who would be appropriate for the governing body of a school, to ensure that the skills profile is met and the new responsibilities—

Richard Fuller: I am listening with great interest to what my hon. Friend is saying. His party obviously has a slightly different perspective on issues from the other party in the coalition, and that is to be welcomed. Two minds can often be better than one. How, from his party’s point of view, does he see the role of a local authority governor evolving as local authorities move towards the role of commissioner for school budgets? Does he believe that local authority governors will be able to wear the two hats effectively, as they have in the past?

Dan Rogerson: I am grateful to the hon. Gentleman for his intervention. In Bedford, people very much have two minds elected to represent them—their excellent elected mayor, Dave Hodgson, alongside the hon.
	Gentleman working hard for constituents there. I agree that issues arising from commissioning need to be examined—not just questions about how much money each school should receive, but wider questions, such as how that relationship can evolve and deliver for the local community.
	To return to the topic of governance, the amendment tabled in another place allows staff and the local authority to have a voice in the discussions that take place within a governing body, but there is plenty of scope for skills that are needed on that body to be provided through co-option and for those put forward as local authority governors to respond to the need for skills.
	On inspection, Liberal Democrats have long said that we want to remove the burden of bureaucracy from schools, and colleagues in the Conservative party have expressed similar views. The more risk-based approach to Ofsted inspection responds to that aim. As Members of Parliament we hear of other instances in our constituencies where local businesses, for example, would welcome a response from Government when risks and problems have been highlighted, but not when that is not seen to be necessary. As we have heard, other forms of data are available so that people can make up their own mind. There are opportunities for inspections to be triggered, should that be necessary. One such example concerning a change of head teacher was provided by the Chairman of the Select Committee, the hon. Member for Beverley and Holderness (Mr Stuart), who is no longer in his place.
	As I understand it, Ofsted will continue to undertake thematic surveys—for example, on safeguarding, to which I referred earlier. Such surveys would include outstanding schools which may not have undergone a full Ofsted inspection for a year or so. I am pleased that the Government have listened and responded to debates. The coalition Government have produced a Bill, as amended in the other place, in which people can have confidence. I hope it will unlock further the potential in the education system to deliver for our young people.

Stephen McPartland: I am grateful for the opportunity to contribute on this group of amendments. Like my hon. Friend the Members for Bedford (Richard Fuller) and for Beverley and Holderness (Mr Stuart), the Chairman of the Select Committee, who is not at present in his place, I broadly support the amendments but would like to push the Government to go a little further in some respects. One of my key themes is that the Bill seems to be written very much with secondary schools in mind, as opposed to primary schools. Although there are some elements of the Bill that focus on primary schools, it could go much further.
	Members in all parts of the House have welcomed the fact that teachers will have anonymity from false accusations. If the individual is charged, the police will not be prevented from investigating, but the teacher will be protected. That is good news, but Members on all sides are concerned that it does not go far enough. One of my worries is that in a primary school setting, where teaching assistants are often given responsibility for dealing with the most difficult children, sometimes the most difficult families, and work in a room with just one or two of those children, they are at severe risk from such accusations.
	I welcome the amendments from another place relating to an application in a court for a judge to lift reporting restrictions. The welfare of the teacher who is the subject of the allegation is taken into account, as is the welfare of the pupil or pupils who are the alleged victims. However, the Government could go a little further and think about staff in specific situations. For example, I know of schools around the country where teaching assistants are often put in charge of classrooms, essentially acting as teachers. Under the Bill, they will not have the same protection as a teacher in the next classroom who is dealing with the same key stage group. I urge the Government to look into such situations and respond accordingly.
	On the admissions code, I welcome many of the changes, particularly the fact that adopted children who were looked after before they were adopted will still have the same priority for places as looked-after children. That is extremely important, as it could benefit 3,000 children each year. I have an example in my constituency of a child who was adopted for many of the best reasons—I know that across all parties there is a big push to ensure that children are adopted much faster, instead of being looked after—yet simply because they did not remain a looked-after child, 17 different funding streams that had been providing support within the school were lost.
	From an educational point of view, it might seem that it would have been in the child’s interest to continue to be looked after, as opposed to being adopted, whereas from the point of view of their social development, it is much better for the child to have been adopted and become part of a more stable family. I welcome the provision, which is important in setting a precedent for considering in the round the priorities in such a situation. Those children still have the same problems securing a place in a school that is right for them, and it is important for the family who have adopted the child to be given access to the necessary services.
	I note that there is to be a national offer day for primary schools and I welcome it, but with some trepidation. It was recommended that it would be on 1 March and be similar to what parents are used to for secondary schools. I welcome the proposal, but I worry that many parents might put pressure on their children at age three or four in the way many do when their children are 10 or 11. I would like to hear a little more from the Minister on how the national offer day for primary schools would work, because it is something that interests me and a large number of my constituents. The reason behind it is that there are different dates by which children are admitted to primary schools in different local authorities, which can cause great confusion for parents. I know from my constituency postbag that often a large number of parents are concerned that they cannot get their children into the nearest one of two schools simply because they have missed the date by which they were to apply for admission. I welcome the proposal, but I would like to know a little more about how it will work in practice.
	We had a robust debate on Ofqual, which was fascinating to listen to. I certainly agree that a regulator should be able to fine an organisation 10%—my hon. Friend the
	Member for Bedford looks up sharply—because I am concerned that awarding organisations regard Ofqual as having no teeth. Much of the focus was on the fact that there were 12 or 13 mistakes in exam papers this year, which affected 140,000 children, creating great confusion for them, their families and their teachers. That can be heartbreaking, because it is not the child’s fault.
	I mentioned in an intervention the possibility of legal insurance offsetting some of the costs, but the Conservative in me is concerned about giving another quango more powers to intervene. I am conflicted on the amendment, but I will support it because on the whole I believe that it is important that regulators have teeth. When we look at the size of some of the awarding organisations, we see that the largest has a turnover of £250 million, and the assessment market is worth £1 billion, so we must have some kind of control over it.

Richard Fuller: I do not wish to detain the House too long on this point, because we have heard many aspects of it. My hon. Friend points out that the organisations are very substantial and that some have turnovers of £250 million or more. Does not that simply point to the fact that for those organisations the reputational risk will be far greater than any penalty that could be imposed? Does not the size of those organisations support the suggestion made by the Chair of the Education Committee, rather than the proposals in their lordships’ amendments?

Stephen McPartland: My hon. Friend makes a fantastic point, but I must stop myself agreeing with him. I believe that the reputational risk is only a very small part of the problem with Ofqual’s relationship with awarding organisations. The problem is that Ofqual has only the nuclear option, to which the Minister referred, of saying, “You are either in or out.” I imagine that causes a great deal of conflict in Ofqual when it investigates an organisation. My hon. Friend knows from his vast business experience that the cost of doing business is often factored into every meeting, and I have no doubt that the cost of engaging with Ofqual is included in every meeting.

Nick Gibb: I want to put on the record the fact that Ofqual will consult on the definition of turnover it will use for the 10% figure. Other regulators have always defined turnover in relation to regulated activities and not beyond them.

Stephen McPartland: I thank the Minister for that clarification. One of the little-known problems with Ofqual’s relationship with awarding organisations is that often when it requests information the organisations can ignore it—I am not saying they do so—because they know that Ofqual only really has the nuclear option; it can either engage with them or not engage. That becomes the organisations’ point of view on the relationship they want with the regulator, rather than the view of the regulator in trying to regulate the industry. We referred to the industry earlier as a market, and it is worth almost £1 billion a year in the UK. There are 182 awarding organisations.

Damian Hinds: On the question of reputational risk versus the power of a fine, does my hon. Friend accept that the two are not necessarily alternatives? Being fined
	or, in an extreme case, being given the highest fine the regulator can give will itself contribute to the costs of reputational risk, so the two can reinforce each other. Reputational risk appears to have been an insufficient deterrent hitherto. Otherwise, we would not have had the extent of problems we saw this summer.

Stephen McPartland: I very much agree with my hon. Friend, because reputational risk is very important. The problem is simply that it comes back to reputational risk and the nuclear option, as many awarding organisations can take a chance and build into their business models the number of mistakes they can make before they appear in national headlines. I am not saying that that is what they are doing, but with Ofqual’s current position there is a very odd situation in which the awarding organisations can identify the relationship they want with the regulator, rather than the regulator regulating the industry.
	Providing Ofqual with the ability to fine awarding organisations at 10% allows it to say, “If you don’t comply and engage with us, we can fine you up to 10%.” I agree with the Minister that there will no doubt be a sliding scale and that it will be introduced with consultation, but the key point, as my hon. Friend the Member for East Hampshire (Damian Hinds) noted earlier, relates to the Japanese example of smashing one circuit in 1,000 to ensure that they comply. We do not want one mistake to ensure that Ofqual and the awarding organisations comply with one another; we want them to have a relationship based on trust and understanding and, as a last resort, for there to be the threat of fine if the awarding organisations do not engage with Ofqual. Reputational risk is important, but I think that we all understand that what affects people ultimately is the bottom line: what profit they are making and how they are engaging. That is what is important, because that is what they are employed to do. I broadly agree with the Ofqual situation. There is a bit of conflict, because it means giving a quango more powers, but in this situation I think that that is correct.
	We also had a robust and prolonged debate on Ofsted, with many interventions. There was a suggestion that some schools would not be inspected for perhaps 10, 15 or 20 years, but in practice that is unrealistic. I was under the impression that when a new head teacher took over a school, particularly a primary school, traditionally that would trigger an Ofsted inspection within a couple of years. I understand that under the Bill’s provisions Her Majesty’s chief inspector of schools will trial a new approach so that, when a new head teacher takes over, the inspector will contact the school to discuss the performance and the head teacher’s plans for the future, which I think is a much more effective way of working with outstanding schools.
	Triggers have been mentioned. I understand that there will be a guaranteed minimum re-inspection rate of 5% and that governors, through the powers and freedoms we are allowing them—the hon. Member for North Cornwall (Dan Rogerson) spoke effectively about this in Committee on several occasions—will be able to say that they are losing confidence in how things are going. If parent governors in our constituencies believe that children are not getting access to the best education, they phone their MP or local authority straight away to demand the best for their children. That would also
	ensure that those schools will have the best from the new freedom to engage and not to be inspected every couple of years.
	On a wider note, I am pleased that Ofsted will no longer give six or seven weeks’ notice of inspections. The notice period had meant that teaches would often work for 15 or 16 hours a day for six or seven weeks, including weekends, to try to ensure that their school is seen at its best. I do not believe that that is the best way of conducting inspections. What Ofsted is doing at the moment is giving a couple of days’ notice before turning up, which provides a much better reflection of the school. As the years go by, that will provide a much better snapshot of what is happening.
	Also, the freedoms for academies in the Bill will lift education across every constituency and local education authority area. Competition is the wrong word to use in a debate on education, but those schools, head teachers and teachers will be seeking to attract the best children. It is important to focus on providing the children with the best schools. Many of the outstanding schools will not now be inspected as often as before, but they will be spending their time helping neighbouring schools that do not have the best procedures in place to move towards becoming outstanding. I welcome the Bill’s proposals in this area.
	My final point relates to direct payments for special educational needs. The Minister said earlier to my hon. Friend the Member for Bedford that people would be able to opt into this process, and I am grateful to him for that, because I would have had great hesitation in supporting any kind of compulsory measure. Now that the Minister has clarified the position, however, I can support the proposal.

Nick Gibb: With the leave of the House, I should like to respond to this interesting debate. I am grateful to my hon. Friends the Members for Beverley and Holderness (Mr Stuart), for Bedford (Richard Fuller), for South West Norfolk (Elizabeth Truss), for Stroud (Neil Carmichael), for East Hampshire (Damian Hinds) and for Stevenage (Stephen McPartland) for their thoughtful contributions, and I shall respond to as many of their points as possible, in addition to speaking to the amendments tabled by the hon. Members for Liverpool, West Derby (Stephen Twigg) and for Cardiff West (Kevin Brennan).
	The hon. Member for Cardiff West asked me to say a little more about Lords amendments 1 to 4, which relate to interim prohibition orders. Since the Bill’s introduction, it has included a new power for the Secretary of State to make such orders. Many regulators have a power of that kind for use in the rare cases when it is in the public interest to bar an individual while an investigation is under way, prior to a final decision being made. When the Delegated Powers and Regulatory Reform Committee scrutinised the Bill, it asked about the safeguards that were going to be put in place. As a matter of policy, we intended the issue of interim suspension orders to be possible only when it was in the public interest, and subject to regular six-monthly reviews when requested. The Committee suggested that those quality safeguards be placed on the face of the Bill. The amendments were debated briefly in Grand Committee before being made in the other place.
	On extending teacher anonymity, we have to proceed on the basis of evidence in restricting press freedom. I have already cited the findings of our survey. Teachers are much more likely to be the subject of allegations than other staff in schools. The hon. Gentleman mentioned the teachers of 16 to 19-year-olds in further education colleges, but the evidence from the survey shows that just 1% of allegations related to teachers in FE colleges, compared with 23% relating to school teachers. The NASUWT’s records show that, in the past 10 complete years, it has provided a solicitor in relation to 1,592 cases of allegations against teachers, of which 1,439 resulted in no further action being taken.
	The survey related to local authority designated officers—LADOs—and the total number of allegations of abuse that were referred to LADOs in the 116 local authorities that responded to the survey was 12,086, of which 2,827, or 23%, related to teachers. Of those, allegations of abuse related to 0.6% of the teaching profession as a whole. That means that there are 1.5 times as many allegations against teachers as against support staff, which had a figure of 0.4% of the total non-teaching population.
	On the basis of that survey, I believe that we have got this measure right. I say with all due respect to my hon. Friends that we must not let the best become the enemy of the good. I have heard Members on all sides of the debate today pushing to extend the measure to more staff, and not to extend it to teachers because of the effect that it has on them, but I think that we have got it just about right.
	The hon. Member for Cardiff West cited the article by the Prime Minister in The Daily Telegraph today. I would like to quote it more fully. My right hon. Friend stated that
	“we remain relentless about combating entrenched failure. We will soon have taken over more failing schools with new academies than in the whole eight years of the programme under Labour. But it’s just as important to tackle those all over the country content to muddle through—places where respectable results and a decent local reputation mask a failure to meet potential. Children who did well in primary school but who lose momentum. Early promise fades. This is the hidden crisis in our schools—in prosperous shires and market towns just as much as the inner cities.”

Graham Stuart: My hon. Friend is right to quote the Prime Minister, who in turn is right to identify this issue. What practical steps can be taken under the current regime to target those schools that are above the floor targets for five good GCSEs and that have limited resources for Ofsted? How will it be possible to ensure that they get the focus that the Prime Minister, the Minister and I would like to see?

Nick Gibb: rose—

Dawn Primarolo: Order. I am sure that the Minister will ensure that his response is relevant to the amendments that we are discussing.

Nick Gibb: Thank you, Madam Deputy Speaker. In the light of your ruling, I will make just one point to my hon. Friend which is relevant to the amendments. The
	performance tables will identify the results and show how well children did at primary school. There will be a column for children who achieve level 5 at key stage 2, and another column for those who achieve level 3 at key stage 2. There will also be columns for those with special educational needs and those with disabilities. That will help to identify those schools that are coasting, and we will then take action against those schools or help them to improve their results.
	The hon. Member for Cardiff West also talked about triggers for inspections. That is a matter for Her Majesty’s chief inspector, but I can confirm that there will be annual risk assessment for outstanding schools, which will normally commence three years after the last inspection. Where there is a change of head teacher before that point, however, the chief inspector has agreed to bring forward the risk assessment, including an HMI review. Ultimately, however, we have to leave it to the professional judgment of the inspector to determine whether an inspection should be triggered. Factors to be taken into account might include: a school’s performance data that had previously been judged to be less than outstanding in achievement or teaching not showing signs of improvement since its last inspection; progress measures showing that pupils or students were not making good progress in comparison with similar groups nationally; or below-average attendances showing little sign of improvement. Many factors can act as a trigger for an inspection.
	The hon. Gentleman also raised the issue of admissions. I thank him for his attention to detail in scrutinising the codes, but I can assure him that they are statutory. “Must” means “must” in those codes; they have the full force of the law. On his wider point, the vast majority of the changes can be implemented quickly, but there are cases in which they might take longer than 14 days, at which point 15 April will form an ultimate backstop. The key point in paragraph 3.1 of the code states that the adjudicator’s direction should be implemented as quickly as possible.

Kevin Brennan: I thank the Minister for his comments. Would he be prepared to put it on the record that going right up to 15 April should happen only on very rare occasions, rather than in the majority or a large minority of cases?

Nick Gibb: What I will put on the record are the words used in paragraph 3.1 of the code, which states that admission authorities must where necessary revise their admission arrangements as quickly as possible, and no later than 15 April, following the decisions to give effect to the adjudicator’s decision. It goes on:
	“An Adjudicator’s determination is binding and enforceable.”
	I will come back to that point when I address the hon. Gentleman’s amendments in more detail.
	On Ofqual, the power to fine would be used only where that was the most proportionate response to an incident of non-compliance with its conditions. As I have said, Ofqual will consult on the use of its power and will publish a full statement as part of its qualifications regulatory framework setting out how and under what circumstances the power will be used. That will make clear Ofqual’s expectation that only serious or persistent breaches will lead to a fine. Of course, it will allow 12 weeks for responses to that consultation.

Graham Stuart: Can my hon. Friend give examples of instances in which such a measure might have been triggered in the past?

Nick Gibb: The incidents I would cite are those from this summer when there were persistent errors. The persistence came, in particular, after we had asked the awarding organisations to check that there were no further errors. They did those checks and confirmed that there were none, but then further errors were discovered and damage was caused. That is an example of persistence in the errors we are trying to eliminate from the system.
	The hon. Member for Cardiff West asked for an explanation regarding Lords amendments 89 to 91 about land. The Bill introduces new powers to transfer the publicly funded land of foundation and voluntary schools to free schools and academies when those schools close or the land is to be otherwise disposed of. Lords amendments 89 to 91 reduce the reach of those new powers so that they do not apply to land that is leased to a new academy by a private landlord. Where we are engaging in commercial negotiations with private landlords for the lease of land to new free schools, we think it is more appropriate to protect any public investment in that land by contractual means rather than in statute.
	The hon. Gentleman also raised the PFI issue and I am happy to restate the purpose of amendment 34. Under section 6(2) of the Academies Act 2010, a local authority “must cease to maintain” a school once it converts to academy status. Some banks and local authorities have asked whether that prohibition on maintenance might prevent a local authority from making a payment under PFI or other contracts. Our view is that local authorities have always been able to use their own resources to provide assistance, including financial assistance, to academies and to enter into contractual commitments and incur liabilities on their behalf. We are clear that section 6(2) of the Academies Act does not prevent the continuation of those activities. All academies are and will continue to be maintained by the Secretary of State under funding arrangements entered into under section 1 of the Academies Act, and any assistance provided by local authorities to academies, whether financial or otherwise, will only ever be a proportion of the total expense. Amendment 34 therefore confirms that local authorities can continue to make payments for academies under PFI and other contracts.
	My hon. Friend the Member for Bedford and the hon. Member for Cardiff West raised the issue of direct payment pilots. The Minister of State, my hon. Friend the Member for Brent Central (Sarah Teather), who has responsibility for children and families, wrote to peers in the other place explaining the importance of introducing this new clause and consulted on the text of the draft clause, including in relation to special educational needs and disability organisations as well as local government interests. The principles behind the clause—greater choice and control for the families of children with SEN—are shared across the House. Indeed, the clause is modelled on legislation on the direct payment health pilots that were introduced by the previous Government. Let me reassure hon. Members that the orders needed to give practical effect to the clauses are subject to the affirmative procedure. These are, after all, powers concerning pilots rather than a national scheme and the clause has a sunset provision of four years.
	My hon. Friend the Member for Beverley and Holderness asked about anyone being able to refer complaints to the adjudicator. We do not believe this change will lead to many more complaints. The regulations on which we are currently consulting will ensure that repetitive, vexatious or anonymous complaints cannot be made. I hope that will provide him with some reassurance. On the issue of spite, which he also raised, “anyone” does mean anyone, so it could be a school or a charity. The only proviso is that they must be willing to put their name to objections and to refer matters that are new or substantially new to the adjudicator.
	My hon. Friend asked about consistency in the referral of misconduct cases by schools to the regulator. Evidence suggests that there is already variation in referrals despite the blanket duty on employers to refer all cases, and this duty has not been affected. Employers will know when a case of misconduct is serious enough potentially to require a referral from the profession, and they can use the draft prohibition guidance, which I can send to my hon. Friend, to help them make this decision. If a member of the public is not happy with the decision, they can refer a complaint to the Secretary of State.
	My hon. Friend also asked about Ofsted’s capacity to deliver more rigorous assessments. We have discussed and agreed the more rigorous risk assessment, and Ofsted has the resources necessary within its budget to achieve this. Every organisation has to prioritise its resources in the current economic climate and Ofsted is no different.
	I thank my hon. Friend the Member for Bedford for his continued and vocal support for academies and free schools. I assure him that it is right that admissions at academies and free schools must comply with the admissions code as set out in their funding agreements. As with all other state-funded schools, complaints about admissions will now go to the adjudicator.
	My hon. Friend also raised concerns about particular families who do not adopt personal budgets—one third is the figure he cited—and the support they require. He argues for having pilots, and that is what the new clause does. I share his concerns about the possible burdens on families. That is why the pilots will look at the support available to families and how the system can be as straightforward as possible to use, as well as at which families take up those payments and which do not. On the point that the hon. Member for Cardiff West made, cost-cutting is not a driver for this policy—it is about having greater choice and control.
	On the issue of Ofqual and how the Conservatives could support a regime of fining by a regulator, my hon. Friend the Member for East Hampshire set out the reasons why the qualifications market needs to be regulated. I should like to make it clear that turnover will be determined in accordance with an order made by the Secretary of State and that Ofqual will consult on how the fining regime is to operate.
	I listened carefully to the comments of my hon. Friends the Members for Bedford and for Stevenage about primary schools. Primary national offer day will be 16 April. The idea is to co-ordinate the date rather than to put any new pressure on parents to get their children into certain primary schools. It merely makes things easier and less stressful for parents rather than more stressful.
	Let me deal briefly with some of the amendments tabled by the hon. Member for Cardiff West. He will know that we have listened carefully to the concerns expressed in this House and in the other place in response to our original intention to withdraw schools and colleges from the duty to co-operate. The evidence of that engagement is clear in these Lords amendments. We have removed the “duty to co-operate” clause as well as the clause that the hon. Gentleman seeks to amend regarding the children and young people’s plan.
	The hon. Gentleman’s amendment (a) to Lords amendment 23 relates to our plans to allow anyone to refer an objection to the schools adjudicator about the admissions arrangements at any state-funded school in the country. The amendment would require admissions authorities and others to comply with the adjudicator’s decision within 14 days of receiving written notice of that decision. Current legislation in this area, which was introduced by the Labour party, requires compliance to be forthwith. Let me assure the House once more that our changes to admissions do not affect the adjudicator’s power to consider and decide on the matter put to him and other matters as he sees fit, or to make binding decisions as a consequence. The amendment would impose a stringent national timetable for the implementation of such decisions. It is based on two false assumptions—first that schools do not wish to put things right, which they do, and secondly that all situations are the same, which they are not. On that basis, I hope that the hon. Gentleman will not press his amendment to a Division.

Kevin Brennan: I am grateful to the Minister for those comments, but can he firm up what he has said by making it clear from the Dispatch Box that he sees no reason why, in the vast majority of cases, the schools adjudicator’s ruling should not be implemented if not forthwith, then within a very short period of time and certainly not at the last possible moment?

Nick Gibb: I have already responded to the hon. Gentleman’s point by quoting paragraph 3.1 of the admissions code. That makes it very clear that these changes should be made as soon as possible and that they are binding.
	On school governing bodies, I pay tribute to my hon. Friend the Member for Stroud for speaking up for the key role governors play in schools and for the important work he is undertaking in establishing the all-party group on school governors. I am also grateful to my hon. Friend the Member for North Cornwall (Dan Rogerson) for his helpful intervention on staff and local authority governors and for his welcome for the amendments he has inspired. We have made concessions on staff and local authority governors, and I therefore hope the amendment in question will not be pressed.
	Lords amendment 27 on the regulations specifying which schools are to be exempt from routine inspection was made because of a specific concern raised by Lord Hunt of Kings Heath: that regulations made through the negative procedure could be extended beyond outstanding schools to whole categories of school—such as all academies or all faith schools—regardless of their inspection history, without sufficient parliamentary scrutiny.
	To provide reassurance on that, the Government propose that any subsequent changes to the first set of regulations, which have been made available to Members as indicative regulations since March, would require approval through the affirmative procedure. The amendment made in the other place will allow for appropriate scrutiny by Parliament. It is not necessary for the first set of regulations to be subject to that because it has been fully consulted on. We shall reflect on the points raised both in this debate and elsewhere before finalising those regulations.
	I hope the amendments to the Lords amendments will not be pressed to a Division, and I commend the Lords amendments to the House.
	Lords amendment 1 agreed to.
	Lords amendments 2 to 26 agreed to , with Commons financial privileges waived in respect of Lords amendments 16 and 23 .

Clause 39
	 — 
	School inspections: exempt schools

Amendment (a) proposed to Lords amendment 27.—(Kevin  Brennan .)
	Question put, That the amendment be made.
	The House divided:
	Ayes 196, Noes 284.

Question accordingly negatived.
	Lords amendment 27 agreed to.

Clause 41
	 — 
	Inspection of further education institutions: exempt institutions

John Hayes: I beg to move, That this House agrees with Lords amendment 28.

Dawn Primarolo: With this it will be convenient—

John Hayes: rose—

Dawn Primarolo: If the Minister could just hold himself back for a second, with this it will be convenient to discuss the following:
	Lords amendment 29, and amendment (a) thereto.
	Lords amendment 36, and amendment (a) thereto.
	Lords amendments 39, 43, 47 to 71, 99 and 100.

John Hayes: My enthusiasm to rise to speak to the amendments is indicative of the thorough scrutiny that the Bill has enjoyed here and in the other place, and of the spirit in which that scrutiny has taken place.
	If I may, I shall speak first to Lords amendments 47 to 71, which make important changes to schedule 12 and further strengthen the provisions that strip away unnecessary central controls over the governance and dissolution arrangements of further education colleges and sixth-form colleges.
	You, Madam Deputy Speaker, with your usual assiduity, will have seen those provisions in the context of the Education Act 1944. In bringing that legislation to the House, the then President of the Board of Education as he was known, Rab Butler, said that it is not possible
	“to start colleges ‘out of the blue,’… It is essential that the House should realise that direction by the State from the top is not the right way to administer this vast matter. What is wanted is to encourage the desires, appetites and feelings of those who wish for different forms of adult education and then to try to meet them as far as possible. As long as we follow that line, I can tell the House that it is our desire to reform and bring up to date the adult education system and to make a great stride forward in this regard.”—[Official Report, 12 May 1944; Vol. 399, c. 2261.]
	Just as a stride forward was made then, so a stride forward is being made now, although I would not claim to be as great as that very noble and distinguished gentleman, Mr Butler.
	In speaking to these amendments, however, the important thing to make clear is the Government’s absolute unwavering and unabridged commitment to the creation of a freer, more responsive further education and skills system—one that is based upon the principles of fairness, shared responsibility and freedom from central Government controls.
	I say that not for any doctrinaire reason, but simply because of this enduring truth: unless we make the system sufficiently nimble to respond to dynamic demand, it will not be fit for purpose. Through the Bill, and in that spirit, we propose to remove a raft of unnecessary and prescriptive duties and to reduce the control of the Government and their agencies over the affairs of colleges.

Steve Rotheram: I have written a letter to the Minister on what he has been saying about apprenticeships and supply and demand
	for apprenticeship places. I am not talking about funding because we have had the debate about the Government providing funding; I am talking about employment opportunities. Is he aware that a training provider called the Liverpool Construction Academy in my constituency is due to close its doors on 25 November, with the loss of hundreds of apprenticeship opportunities and the jobs that go with them?

John Hayes: The hon. Gentleman is a great champion of apprenticeships, having been an apprentice himself. He understands the value of apprenticeships in providing people with the skills not only to get a job, but to lead more fulfilled lives. I hear what he says about his particular constituency interest and he will expect me to respond in a similar spirit by saying that I am more than happy to meet him to discuss that matter in some detail. However, I am sure he understands that you will not allow me to go into great detail about that tonight, Madam Deputy Speaker.

Greg Knight: I applaud what my hon. Friend has said so far. Does he appreciate that there is an ongoing demand for apprenticeships, particularly in the historic vehicle restoration movement, where expertise is needed? Any burning of red tape in that industry that would lead people to take on more apprenticeships would be most welcome.

John Hayes: As ever, my right hon. Friend makes a valued, wise and richly-coloured contribution to our affairs. His expertise in that field is unparalleled in this House and, of course, I take his recommendation seriously; indeed, he has raised the issue with me already. As he knows, I can tell the House that I am taking up the matter with an assiduity that is a mere token compared with his diligence, which has brought him such prowess in this place and elsewhere.

Greg Knight: Although I am delighted at what the Minister has said about me, I suppose he and I ought to declare an interest because we both may need the services of future apprentices in maintaining our historic vehicles.

John Hayes: My hon. Friend is right. We ought to declare that we share an interest in that topic and that we might have some personal interest in ensuring that there are sufficient craft skills to maintain our historic vehicles—although his demands in those terms are considerably more numerous than mine.
	The sector has welcomed the proposals to offer colleges more freedom. Colleges have long called for such an approach. In the long years that I spent in the shadows before the electorate elevated me to the light, I remember hearing from colleges across the country that they hoped, wished and longed for a Government who would recognise that power is best vested in the hands of those closest to where it is exercised. Colleges should be able to respond to their learners and employers in the way the Bill facilitates. It is therefore unsurprising that, in the public evidence sessions of the Bill, the Association of Colleges said in written evidence that the legislative requirements removed by the Bill,
	“will strengthen rather than diminish the historic community role of Colleges and strengthen the importance of strong governance”.
	I wholeheartedly agree.
	Lords amendments 47 to 71, changes which I recognise were made late in the Bill’s passage through the other place, have been made in the context of a changed further education landscape. In October 2010, the Office for National Statistics announced its decision to reclassify FE colleges to the public sector for the purposes of the national accounts. That decision exposes colleges to the full rigours of the Government expenditure regime and means that they will lose the flexibility to phase expenditure between different financial years and that they will need to work within a financial year that does not line up with their academic year. Such a decision also makes it likely that the very freedoms that were introduced to enable them to borrow without seeking permission will need to be taken away from them, and that even tighter constraints will need to be introduced.
	I would like to thank Baroness Sharp for raising those issues in the context of the sterling work she is doing as chair of the inquiry into colleges in their communities. In debating these important amendments, it is vital for me to emphasise the significance of the ONS decision. We were already well on the way to freeing the sector from some of the diktats, bureaucracy and unnecessary regulation that had so hampered and inhibited people from exercising their long-cherished desire to respond proactively to the interests of learners in the way I have described. Nevertheless, the ONS’s reclassification has turned our desire into an imperative and we are working closely to try to persuade it to rethink that classification, because it will have profound effects on the FE sector. The late changes made in the other place, which we are debating for the first time in this House today, were made because of that ONS classification. Those and other controls would all act as significant barriers to college growth and would stifle innovation and creativity in our further education sector. As I said, it is our intention to make the necessary legislative and administrative changes to encourage the ONS to reclassify colleges back to the private sector which, as my noble friend Lord Hill said in the other place, is where successive Governments have wished them to be.
	I want to mention the ability that Lords amendments 49, 58 and 69 will give colleges to modify or replace their instruments and articles of governance. In the world I have described—the picture I have painted—the additional freedoms that colleges will enjoy necessitate a new approach to governance. We need colleges to rise to the occasion. I am confident that they will, but it is partly a case of rethinking how colleges are governed. Colleges will continue to be required to comply with a statutory governance framework, but that has been significantly simplified to allow colleges the freedom to decide how best to shape their governance arrangements to meet the needs of their learners, employers and the local community.
	May I say a word about the work that the Association of Colleges is doing in that regard? The association is working on a set of model instruments and articles that are framed in the new environment of greater discretion and freedom. There is immense human capital in colleges but, too often, it has been locked up because of the approach taken by previous Governments. There was a view that it was best to dictate, predict and provide from the centre. That is not this Government’s view. For example, as a result of the amendments, colleges will no longer have to seek the Government’s permission
	to add more members to their governing body or to determine whether a job vacancy should be advertised nationally.
	Those are important aspects of a college’s governance, but they are not things in which the state should be involved. The use of that power will not be compulsory. If colleges are content that their existing arrangements support them to meet the needs of local learners and employers, they will not have to change them. The benefit of the changes is that the decision over when and how colleges exercise those powers sits firmly with them. I mentioned that such measures have been welcomed by colleges themselves. They were, for the most part, also warmly welcomed in the other place.

Andrew Percy: The Minister is making an excellent speech on the amendments. Will he tell us whether the Lords amendments will make it easier for colleges to work in partnership with schools or to offer and perhaps enrol pupils themselves at secondary level? He may know about a college in my area that wanted to enrol pupils but could not do so unless it went through the pupil referral unit route and they were classed as excluded. Will these changes make it easier for a college to work in partnership with schools in the local area?

John Hayes: I am grateful to my hon. Friend. I think that these changes will enable colleges to form new kinds of partnerships and collaborations with other institutions in the sector and beyond, with businesses, and with a whole range of community-based organisations. I see this as an opportunity for a more eclectic system that is as different as the needs of each locality. I do not want to see a vanilla-flavoured product dictated from the centre; I do not want that kind of ugly ubiquity to characterise our further education system.

Bob Stewart: Will the Minister give way on that point?

John Hayes: On the point of ugly ubiquity, I happily give way to my hon. Friend.

Bob Stewart: In my constituency we have Bromley college, and I have been speaking to people there. Will these changes allow Bromley college to control more properly the fees that it has to charge? At the moment, it is affiliated to Greenwich university and is being forced to charge fees that it does not want to charge, which is very much against the spirit of what we are trying to do. Can it have the freedom to seek other partnerships in the way that we have been discussing—for ordinary degrees, for example? There must be some way in which colleges, which we all want to charge the minimum fees, can actually charge those minimum fees rather than be forced to raise them.

John Hayes: My hon. Friend is the very antithesis of both ugliness and ubiquity; indeed, he is known for his integrity and truthfulness. As Keats understood, and Shaftesbury in the other place later, truth and beauty are intrinsically linked, and so my hon. Friend’s truthfulness
	has an aesthetic all of its own. On the specific point that he raises, the way in which colleges have, over time, been dictated to and controlled from the centre has largely been about funding mechanisms. Colleges have danced to a tune set around funding. He is absolutely right to say that greater freedom means being more flexible about funding. It means allowing colleges to devise the kind of offer that is right for their locality in the kinds of partnerships that my hon. Friend the Member for Brigg and Goole (Andrew Percy) described, and funding needs to reflect that.
	We are on a journey, and not all of it can be done overnight. When I came into the job, I was able to put in place a number of important changes that stripped away some of the central control. Since that time, we have done more, and these amendments go a step further. But this is not the end of the journey. The destination we seek is what I began to describe a moment ago—a more eclectic, more responsive and more dynamic system. I am not, as you know, Madam Deputy Speaker, one to overstate my virtues, but I would go so far as to say that what we are doing in further education is a model of public service reform: a deregulated system that is free to respond to local circumstances; dynamic and innovative; flexible and, in my judgment, imaginative—I make no apology for using that word—about exactly what it does and how it does it; and uses funding to feed that kind of new beginning. As I said, though, I do not want to overstate the case.

Greg Knight: rose —

Graham Stuart: Will my hon. Friend give way?

John Hayes: Once more, and then I must return to my notes.

Graham Stuart: My hon. Friend could see one of the reasons for the need for flexibility if he came to visit Beverley, as I have frequently invited him to do, where our excitement grows with each delay until he does so. He would see the area where the new East Riding college was to have been built but, because of the mess that was made of FE capital funding under the previous Administration, it looks like a bomb site in the middle of Beverley. As we move forward with these freedoms and with the excellent leadership that we have at East Riding college, I hope that we will see the college on that site in the near future.

John Hayes: Every day a new invitation for me to visit a different part of the country arrives, each one more seductive than the last, but none more attractive than the overtures of my hon. Friend the Chairman of the Select Committee. Tonight I will do what I rarely do in the House: I commit, from the Dispatch Box, to visit his college, because he has made this case so frequently and persuasively that I feel that I have been less than generous in my response thus far. I will certainly come to look at the specific circumstances that he described in his—as usual—pithy and well-informed intervention.

Greg Knight: rose —

Andrew Percy: rose—

John Hayes: I will give way once more to my hon. Friend the Member for Brigg and Goole and then I must return to my text.

Andrew Percy: Now that my hon. Friend the Member for Beverley and Holderness (Mr Stuart) has seduced the Minister into visiting East Riding, can he, while he is there, show us a bit of ankle and come to visit Goole as well?

John Hayes: rose—

Dawn Primarolo: Order. Perhaps I may help the Minister by saying that if he returns to his notes, his diary might not get so full.

John Hayes: That is wise advice, Madam Deputy Speaker, and it is taken in the spirit in which it is given.

Greg Knight: Will the Minister give way?

John Hayes: No, I will make a little progress, if I may, and then I will give way again.

Greg Knight: rose —

John Hayes: I have made it clear that I am not going to give way at this juncture, because I fear that my right hon. Friend is trying to encourage me to stray, but I will give way to him in a few moments when I have made a little more progress.
	There was a debate in the other place on the importance of staff and student governors in colleges. Ensuring strong staff and student representation on a governing body is of importance to me. During the passage of the Bill, I have had positive discussions with the National Union of Students and the University and College Union on this subject, as has my noble Friend Lord Hill. We were anxious to ensure that staff and student involvement helped not only to inform good practice in colleges but to shape the offer in those colleges. As a result of those discussions, we continue to require colleges to have such governors on their boards. The House will want to be reminded that this requirement was warmly supported by Baroness Jones of Whitchurch, who was
	“pleased…that this commitment”
	was
	“honoured in both spirit and practice in the amendment”
	that was brought before the Lords and that we are discussing this evening. In fact, Baroness Jones went further and acknowledged that our amendment
	“is indeed better than that tabled by those on our own Benches on this issue”.—[Official Report, House of Lords, 9 November 2011; Vol. 732, c. 332.]
	How often does one receive a tribute as generous, but as deserved, as that?
	I now happily give way to my right hon. Friend the Member for East Yorkshire (Mr Knight).

Greg Knight: I am most grateful to the Minister, who is being very generous in giving way. He spoke earlier about taking us on a journey, and even earlier he quoted Rab Butler. May I remind him of what Rab Butler said about journeys—that it is best to get off the train before it hits the buffers? With the light-touch approach that
	the Minister is suggesting, is there not a danger that some colleges may move assets overseas, to the detriment of the British taxpayer?

John Hayes: It is true, of course, that as we free up the system, some of the controls that have previously been in place—some of the levers that the Government could pull—will no longer be there. Frankly, however, I have to say to my right hon. Friend, to whose assiduity, eloquence and wisdom I have previously paid tribute, that if the price of freedom is that loss of control, it is a price worth paying for the benefit it brings in the kind of innovation, exercise of imagination, responsiveness and dynamism to which I drew the House’s attention earlier. That was certainly the view of the other place and, in general terms, the view of the Committee as we went through the Bill. There is growing cross-party acknowledgement that we can no longer predict and provide—that we do indeed need to create a more responsive system. I say that because the character of our economy is changing. Economic need is increasingly dynamic, and a system that is controlled from the centre would never be sufficiently nimble to respond to that commercial need. That is now widely acknowledged. The difference is that we are going about this with purpose, energy and enthusiasm.
	Let me return to staff and student representation. It is important that we see the statutory requirement that I have described merely as a baseline. There are all kinds of other good things that we can do in terms of staff and student representation, but representation on governing bodies, it was argued persuasively, should be a baseline. Lords amendment 51 extends those changes to institutions that are not college corporations, but that have been designated by legislation to receive public money for the provision of further education. It would come into effect should they decide to change their existing instruments and articles.
	Lords amendments 50 and 58 give colleges the power to close themselves, which is known as dissolution. Currently, only the Secretary of State can dissolve a college. The amendments remove that power from the Secretary of State and give colleges control over their own dissolution. Colleges will also have the ability to transfer their property, rights and liabilities to another person or body for the purposes of education. These amendments and the regulations that will be laid in support of them include a number of safeguards to ensure that any dissolution decision is taken only when all those affected—staff, students and the local community —have been properly consulted, and that the process will be transparent, recognising that colleges are providers of an important public service.
	In Committee, the hon. Member for Hartlepool (Mr Wright), who is not in his place, but who was a diligent member of the Committee, raised questions about the likelihood that colleges would fail with these new freedoms. There is no evidence to suggest that the extra freedoms will increase the risk of failure. Notwithstanding what I said about the growing understanding of the need to allow colleges to be more locally responsive, it is worrying that there are those who believe that colleges will not rise to the challenge of the new freedoms and who believe that only through central Government control can we give the necessary protection to the common interest, which I have no doubt was in the heart of the
	hon. Gentleman. I do not think that he is right. Colleges have shown time and again that when they are given the opportunity to be their best, unrestricted, they can be so.
	I am keen to address that point in more detail in relation to the amendments. Further education is a high-performing sector, with more than 95% of colleges judged satisfactory or better. Sometimes further education has been treated as what Sir Andrew Foster described as the “neglected middle child” of education, somewhere between schools and higher education. I see it more as the prodigal son, and not just that, but the prodigal son grown up. I want further education to be a favoured part of our education system because of the difference it makes to so many lives. The important thing is to ensure that where problems occur, there are robust monitoring and support systems so that colleges are given the opportunity and help to recover. It is right that we have in place the proper protections from failure because, as I have described, public interest is involved. A great deal of taxpayers’ money is involved too. However, we should not get to the point of creating an immense infrastructure to manage the college sector.
	I think that it is correct to say, albeit with the benefit of hindsight, that after incorporation and the freedoms that colleges enjoyed as a result, we responded in a heavy handed way to the occasional, rare incidents of failure. It is reasonable to conclude that the advent and actuality of the Learning and Skills Council was an overreaction to the challenges associated with the new freedoms.

Andrew Percy: Will the Minister explain in more detail the process for consulting the local community, if a college fails or chooses to dissolve itself? I know he has said that that will be set out in regulations, but will he give us some idea of the robustness of the consultation that he has in mind?

John Hayes: In those exceptional circumstances, I would expect the consultation to be as full as possible. By that I mean that the views of all parties with a direct interest in the college’s affairs, including the local businesses engaged with the college, local learners and the wider community—the family associated with the college—should be sought fully over a proper timetable. Whatever means are necessary should be used to access those opinions.
	Those circumstances will be rare, but I give an absolute assurance that the consultation will be full, fair and frank; that no action will be taken that would endanger the interests of the people whom I have described; and that the Government will play their part in ensuring that that takes place. As I have said, further details will be available to the House when regulations are laid.
	As I have said, 95% of colleges improve after receiving support, but in the rare cases where recovery is not achieved and there is evidence of significant mismanagement, legislation gives the Secretary of State the power to intervene as a matter of last resort. I hope that that assures my hon. Friend the Member for Brigg and Goole that the protection of students and public investment is of fundamental importance. Although we are creating a very different regime for colleges, we will not neglect our duties in that regard.

Graham Stuart: I would like to take the Minister back to the intervention from my right hon. Friend the Member for East Yorkshire (Mr Knight). In East Yorkshire, the Harrier was developed with a lot of taxpayers’ money and then shipped abroad to become an American aeroplane. We rather fear that the Hawk will follow. Will the Minister reassure us, in more specific terms than he used in response to my right hon. Friend, that a college will not be so free that it can leave the country with its assets, if it suits the organisation rather than the needs of the taxpayers?

John Hayes: As I have said, where public interest is in jeopardy, the Secretary of State will retain powers under the Bill to intervene as necessary. I paid tribute to my hon. Friend a few moments ago for his patient endurance in respect of my forthcoming visit to Beverley. It was Ruskin who said,
	“Endurance is nobler than strength, and patience than beauty.”
	We can therefore take it that my hon. Friend is a patient endurer, more noble than strength and beauty. It is likely that the circumstance he describes would happen only rarely, but it is important that when a college wishes to transfer its property, rights and liabilities to another provider, the Secretary of State retains the kind of powers that he requested.
	Lords amendments 53, 56 and 62 reinstate statutory safeguards relating to the specific governance and constitutional arrangements of voluntary sixth-form colleges that were inadvertently removed by the Apprenticeships, Skills, Children and Learning Act. It was the previous Government’s view that legislation should reflect the distinct constitutional position of voluntary sixth-form colleges, and they confirmed that they would look to reinstate those protections through legislation. We agree with that view, and it is what the amendments do. The new provisions cover what was afforded by previous legislation or Secretary of State directions.
	As Members know, I am a keen advocate of freeing colleges from central prescription, direction and control. Such things inhibit a college’s ability to become the master of its own destiny and stifle innovation and growth in our further education sector. The changes in the Bill will enable the Government to present the best case possible to encourage the Office for National Statistics to review its decision to reclassify colleges into the public sector. However, we are not merely responding to the ONS; we began this programme of reform long before we knew about the ONS reclassification. Indeed, it was one of the first things that I set out when I became a Minister. The changes that we have made in the Bill, including the ones that we have introduced at a later stage, are entirely in the spirit of the policy direction set out in the skills strategy which I published, following extensive consultation, last autumn. Indeed, they are in the spirit of the further consultation in which we were involved over the summer, which will lead to the publication of “New Challenges, New Chances”.
	The truth is that the ONS reclassification has been a further spur to us, but has not caused us to change direction. If anything, it has cemented our determination to consider every aspect of college management and every means by which we could free colleges from bureaucracy and direction. That fresh thinking has inspired the changes that have been made to the Bill.
	As I have said, the changes, and our efforts to secure the private sector reclassification of colleges, have been welcomed, not least by the Association of Colleges. It considers that they will provide colleges with additional flexibility, allowing them to respond effectively to their local community and economy. I should like to place on record my gratitude to the Association of Colleges for its guidance and support, and indeed for how it has challenged us, in helping the Government develop this impressive legislation.
	Lords amendments 28, 29 and 39 concern the business of colleges and inspection. You will remember, Madam Deputy Speaker, the report that the previous Government commissioned from Sir Andrew Foster. I have a copy of the summary here. They asked him to examine the potential of further education, and he concluded that the landscape that it faced was
	“crowded with organisations charged with inspection, improvement or regulatory functions. There is unnecessary complexity and duplication of effort and further rationalisation is required.”
	He also recognised, I think, that we needed to rethink how colleges were gauged, inspected and monitored. Knowing that we had some outstanding further education colleges in this country, we decided that the time was right to look afresh at inspection and regulation.
	In that context, some of the comments that the Minister of State, my hon. Friend the Member for Bognor Regis and Littlehampton (Mr Gibb), made about schools pertain to colleges too. He dealt with the issue of the inspection of schools earlier this evening, and some of the same principles apply to colleges. In my visits to colleges across the country, I have continually been impressed by the quality of teaching, the standard of learning and the innovative systems that colleges put in place to maximise learners’ potential.
	Lords amendments 28 to 30 provide for greater parliamentary scrutiny of regulations exempting further education colleges from inspections, by requiring that all regulations except the first set be subject to the affirmative procedure, so that both Houses can be assured that a full debate will happen before further colleges are exempted. We decided very early on that we wanted to limit the inspection of further education colleges, as we did in the case of schools. However, it is important that that exemption is qualified in the way that I have described. The Prime Minister spoke today of coasting schools, and nor do we want to see any coasting colleges. Although there is little evidence of them, it is important that the House can debate the matter as further exemptions take root.
	I turn to Lords amendments 36, 43 and 100, which put the legal framework for apprenticeships on a more sustainable and realistic footing. I need not regale the House at length with how passionately I support apprenticeships—at least, not for more than a few minutes. As you know, Madam Deputy Speaker, I have championed apprenticeships both in opposition and in government, and the Government have turned our rhetoric into action by delivering the biggest growth in apprenticeships in modern times. I have said before, and I am happy to say now, that there is more work to be done. As we make that growth sustainable, we will need to consider bureaucracy and the quality and age spread of apprenticeships. It is absolutely right that we should do that, but let us not understate the growth that we have
	seen—29% growth in under-19 apprenticeships and 64% growth in 19-to-24 apprenticeships over two years, and a big jump in post-25 apprenticeships.
	It is important to say that the previous Government had the same aims. Many times, previous Ministers, including the previous Prime Minister, estimated the likely jump in the number of apprenticeships and the number that would be necessary to fill skills gaps. However, this Government are actually delivering. We are making more opportunities available to more people to add to their skills, which will increase their chances of getting, keeping and progressing in jobs. We know from independent research that someone who has a level 2 apprenticeship is likely to earn £70,000 more over their earning lifetime than somebody who has not, and that somebody with a level 3 apprenticeship is likely to earn more than £100,000 more. That is roughly equivalent to a degree.

Margot James: I congratulate my hon. Friend on the amazing increase in apprenticeships that he has outlined. I met my local college, Stourbridge college, and other colleges last week, and they reported a huge increase in apprenticeships over the past six months. Is he aware of another route into apprenticeships, which emerged during a meeting that I had the previous week with Stourbridge jobcentre? It reported that among 18 to 24-year-olds a route in was via two-week work experience placements. In many cases, they were being converted into apprenticeships.

Dawn Primarolo: Order. It is very interesting to hear of the extensive commitment that the Minister has personally to apprenticeships, and indeed to hear the point that the hon. Member for Stourbridge (Margot James) has made, but we are discussing Lords amendments. Although Lords amendment 36 is about securing the provision of apprenticeships in certain regulations, the debate is going a little wide of that. Perhaps the Minister could relate his comments to the amendments.

John Hayes: I was not going to be encouraged to speak lyrically about work experience, although I could, but I hear and value what my hon. Friend the Member for Stourbridge (Margot James) says.
	Amendments 36, 43 and 100 deal specifically with the so-called apprenticeship offer. As I said, apprenticeships play a key role in promoting growth and prosperity in British business and give renewed hope and purpose to our young people, who are so affected by the present climate. Through the Bill, we are redefining the apprenticeship offer. We are moving away from what I regard as an unrealistic guarantee that sought to require the Government to tell employers whom they should and should not employ. The previous Government took the view that the House could place a duty on the chief executive of skills funding to fund apprenticeships for anyone who wanted them. [Interruption.] The hon. Member for Cardiff West (Kevin Brennan) intervenes from a sedentary position, but he knows that in practice, the previous offer was undeliverable. There was much discussion of this matter in the other place. I pay tribute in particular to Lord Layard, who made this case forcefully and with whom I have enjoyed many discussions. He also writes persuasively about happiness
	—I read a recent essay from him on that subject. Happiness is all of our aims, is it not, individually and communally?

Graham Stuart: Will my hon. Friend give way?

John Hayes: Is this about happiness?

Graham Stuart: I am always focused on happiness. I thought I could increase the Minister’s sense of contentment if I attempted to correct him. Under the previous situation, there was an obligation not to fund an apprenticeship for anyone who wanted it but to provide one, outwith any ability necessarily to ensure that an employer came forward. That is why the Minister and the Government were right to make that alteration, not withstanding the complaints of Opposition Members.

Dawn Primarolo: Order. I am very glad that the hon. Gentleman got his point on the record, but we are not debating the previous Government’s record or apprenticeships generally; we are debating amendments on quite narrow points in the Bill. I know the Minister is really eager to come back to that.

John Hayes: As you say, Madam Deputy Speaker, we are debating the character of the apprenticeship offer. This Government take the view that we need further to refine the legal framework for apprenticeships. The debate on this subject in the other place was on the character of that duty. Lords amendment 36 places a new duty on the chief executive of the Skills Funding Agency to make reasonable efforts to secure employer involvement in apprenticeships. That is so important because we have changed assumptions of the nature of apprenticeships. We take the view that apprenticeships should intrinsically involve employment—making an offer separate from employment seemed nonsensical.
	I make that point because until relatively recently, some apprenticeships—programme-led apprenticeships, for example—were not tied to employment in quite the same way. Lords amendment 36 was the outcome of a great deal of hard work and good will, as I have described. The overtures made to me by Lords Layard, Wakeham, Willis and Sutherland persuaded the Government and my noble Friends to devise an amendment that satisfies the wishes of those who want to place a clear duty in the Bill, but not one that the Government think is undeliverable.
	Although I know some feel that I have summarised the Lords amendments all too briefly, those amendments put apprenticeships, the freedoms about which I have spoken, the changed inspection regime, the different role for the Government, the new emphasis on skills, and the mantra—I decidedly and deliberately put it that clearly—of freedom, flexibility, innovation and dynamism, at the very heart of this legislation. I think they improve the Bill significantly and I look forward to hearing whether the Opposition think so too.

Stephen Twigg: It is always a great pleasure to speak opposite the Minister in such important debates. This is my first opportunity to do so from the Opposition
	Front Bench. The Minister reminded us that my noble Friend Lord Layard has written about happiness, about which he is an international expert, alongside my constituent Ken Dodd, who has been writing and singing about such matters for a very long time.
	The Opposition have serious wider concerns about the Bill, some of which, including on schools, were addressed in the debate on the previous group of amendments. Other concerns, including those on information, advice, guidance and the careers service, are outside of the scope of today’s debate. I should like to focus on inspection, governance and apprenticeships. I echo many of the things the Minister said, and in particular his positive comments on the role of the Association of Colleges, and I look forward to attending its conference in Birmingham later this week.
	I also echo what the hon. Member for Brigg and Goole (Andrew Percy) said about the importance of partnerships between further education colleges and the wider education system, including schools. In the debate on the previous group, we discussed the importance of co-operation and collaboration alongside autonomy and competition. We often discuss school-to-school and college-to-college co-operation and collaboration, but there is great scope for further co-operation and collaboration between schools and the further education sector.
	Let me address the inspection of further education institutions. All hon. Members are seeking to strike a balance between autonomy and inspection—this is a similar debate to the one on schools, as the Minister said. Lords amendments 28 and 29 have much the same effect as Lords amendments 26 and 27. The former relate to further education institutions and the latter to schools.
	The Opposition have a number of concerns that echo those we raised about schools, although they are not exactly the same. I should like briefly to put some of them on the record; they have been raised in previous stages both in this House and in the other place. We are concerned that exempting certain further education colleges from inspection will undermine the campaign for high standards in those institutions, and in particular we fear that the Government’s approach is simply to rely on a market effect, which could let down, for example, students who are currently studying. Their institution could struggle and yet nothing will be done, and there is no trigger for them to make an inspection happen. It is possible—we debated this with respect to schools—for a further education institution that at one time was high performing to slip for some reason. The lack of an inspection regime in such a situation could be a major challenge.
	The new Ofsted chief inspector, Sir Michael Wilshaw, was quoted in the previous debate by my hon. Friend the Member for Cardiff West (Kevin Brennan). The chief executive’s point was about schools, but it applies to further education colleges as well—the principle is much the same. The conditions that would render a further education institution exempt from inspection are not clear. If the Minister has the opportunity, with the leave of the House later, I should like him to clarify the Government’s thinking on when a further education college will be deemed exempt.
	I understand that that thinking will be set out in regulations, but Lords amendments 28 and 29 mean that all regulations apart from the first set made under
	section (5) of the Education Act 2005 must be subject to the affirmative procedure. There is no requirement for an affirmative resolution the very first time the exemption criteria are outlined. I invite the Minister to explain his reasoning for that and to assure us that the measure is not simply being rushed through because of Ofsted’s budget situation. Given the seriousness of the step that is being taken, and the lack of public consultation on it, the Opposition believe that there should be an affirmative resolution the first time as well as on subsequent occasions, and have tabled an amendment to that effect.
	The Minister referred to issues of governance. As Lord Hill acknowledged on Report in the Lords, Labour peers, led by my noble Friend from the Labour Front Bench, Baroness Jones, made important arguments on this issue. Labour Front Benchers in the other place tabled an amendment to reinstate the rights of students and staff to be represented on further education colleges’ governing bodies. As the Minister outlined, the Government brought forward an amendment on Third Reading in the other place to guarantee governing body places for staff and students. Lord Hill said:
	“It may help if I inform noble Lords of discussions between the noble Baroness, Lady Jones of Whitchurch, and my honourable friend, the Minister for Further Education, Skills and Lifelong Learning”—
	the Minister—on her amendment to
	“retain requirements for staff and student governors…The Government have brought forward these changes to support our case for the private sector classification for colleges, in accordance with the policy of successive Governments. It was not our intention to encourage colleges to remove staff or student governors from college governance arrangements. I know that colleges greatly value the contribution that those governors make.
	Having listened to the arguments that were put to him by the noble Baroness, Lady Jones…my honourable friend”—
	the Minister—
	“and I have spoken further. We have decided that the Government will return at Third Reading with their own amendment, which will give effect to what the noble Baroness's amendment seeks to achieve.”—[Official Report, House of Lords, 1 November 2011; Vol. 731, c. 1135.]
	Let me thank the Minister for his generous tribute to my noble Friend and also echo her thanks and appreciation to him and his colleagues in the Department for this important change to the legislation. Participation in the governance of FE colleges is an important part of student citizenship, as well as contributing to good governance. I would like also to put on the record our appreciation to the National Union of Students for its excellent work on ensuring that the relevant amendments were agreed.
	Nobody in this House could doubt the Minister’s personal commitment to apprenticeships. We welcome the amendments that impose a duty on the chief executive of the Skills Funding Agency to make reasonable efforts to secure employers’ participation in apprenticeship training for all young people in the specified groups covered by the redefined offer—that is, 16 to 18-year-olds and 19 to 24-year-olds with a disability or learning difficulty assessment, as well as young care leavers. Without those amendments, the Bill would have simply taken opportunities away from our young people. The Minister mentioned the assiduity of my hon. Friend the Member for Hartlepool (Mr Wright) in Committee, where he said that the clause in question represented a wholesale degrading in the value the Government place on apprenticeships; that it is a retrospective step, stopping
	the duty to create apprenticeships for suitably qualified people; and that instead of creating jobs, transferring skills to young people, and boosting the economy, this clause does the exact opposite.
	Lords amendment 36 is a significant improvement, but we believe that there is scope to go further. As the Minister has set out, under the legislation introduced by the previous Labour Government, the chief executive of the Skills Funding Agency had a duty to secure an apprenticeship place for every suitably qualified person within certain specified categories. The previous Labour Government’s policy was that the agency was under a duty to find an apprenticeship for every qualified young person who wanted one. They had to be given two choices about the sector that they wished to enter. That was removed in the original draft of the Bill, but as the Minister has said, a cross-party group of peers, led my noble Friend Lord Layard, achieved an important Government concession that required the agency to make reasonable efforts to involve employers in apprenticeship training, which has led to Lords amendment 36, which we welcome.
	The amendment was a cross-party amendment, tabled in the names of Lord Layard, Lord Wakeham, Lord Willis of Knaresborough and Lord Sutherland. Lord Layard said in the other place:
	“If you look at the situation in our country, it is clear that academic young people are offered a clear route to a skill and a useful role in society. They can see where they are going. That is not the case for less academic young people. There is no clear route that they can see they are entitled to go down. The result is low levels of skills and a degree of alienation…If you look at this from a young person’s point of view, we are raising the education participation age. It is quite difficult to see how we are going to be able to do that in a way that is acceptable to young people unless these apprenticeship places are available to them. We need legislation that states the main aims of our education system. For that 16 to 19 year-old group, we have a lacuna. We cannot fill it by ministerial statements and assurances, as Ministers come and go. We expect the basic structure of our educational system to be reflected in the laws of the country.”—[Official Report, House of Lords, 14 September 2011; Vol. 731, c. GC274.]
	I make no apology for quoting Lord Layard at some length, because he set out a challenge for us all, in all parts of the House, to address the issue—it is not a new issue, but one that none of us has got right in decades of trying—of how we provide a high quality route for those who will not necessarily follow the route into higher education. Through our amendment (a) to Lords amendment 36, we would like to strengthen the slightly moderate language used in the Government’s nevertheless important concession. My concern is about what will count as “reasonable efforts”. In particular, what rights of redress will young people have when they cannot get an apprenticeship and do not think that reasonable efforts have been made?

Steve Rotheram: My hon. Friend has outlined the move in emphasis away from securing employment for every qualified person and towards involvement with employers. Will he join me in congratulating Liverpool city council, for instance, which has decided to use an innovative model to create 2,000 new apprentices?

Stephen Twigg: I am delighted to join my hon. Friend and constituency neighbour in congratulating Liverpool city council, which, despite one of the worst funding
	settlements from central Government, has been able to create a new programme. I thank him for that opportunity, although I am in grave danger of moving beyond the scope of this debate, so I shall return to my speech.
	Our amendment would change the term “reasonable” in Lords amendment 36 to “best”. In contract law, making a “best effort” requires a higher level of commitment than making a “reasonable effort”. Our amendment would place a greater duty on the chief executive to secure employer participation in apprenticeships for the specified groups and would reintroduce, in part, the previous Government’s commitment, which placed a duty on the chief executive to find an apprenticeship for all who wanted one.
	This is a major challenge for us all. In a recent speech, my right hon. Friend the Leader of the Opposition set out a new policy on apprenticeships, giving a commitment that in future all major Government contracts should
	“go to firms who commit to training the next generation with decent apprenticeships,”
	and that none should
	“go to those who don’t.”
	I invite the Minister today to consider making a similar commitment on behalf of the Government. I seek assurances from him about how the new clause proposed by Lords amendment 36 will be implemented in the context of the Government’s broader approach to apprenticeships. For example, concerns have been raised about Train to Gain places being replaced or rebadged as apprenticeships. Today we have seen early coverage in the media of a report—to which I understand the Minister has contributed—by the Institute for Public Policy Research, due to be published later this week, setting out concerns that younger people are not getting a fair share of the increase in apprenticeships. I appreciate that there is a balance to be struck, and we very much welcome older workers having the opportunity to take up apprenticeships, but with youth unemployment almost certainly set to hit 1 million this week, we need to maintain the important focus on young people and the opportunity that is provided by having an apprenticeship place.

Graham Stuart: The hon. Gentleman is giving a thoughtful speech. In light of his amendment (a) to Lords amendment 36, which seeks to ensure that the chief executive should try to make reasonable efforts to secure employers’ participation, does he agree that we would not wish this or any other Government to get on the hook over the numbers? We must maximise the numbers, but also ensure that we have quality. If we have apprenticeships that do not lead to a major improvement in the earning potential of the young people in question, we will have betrayed them. If courses do not last long enough to give them the skills to raise their value in the market place, we will have betrayed them. It is important not only to provide opportunities, but to ensure that they are valuable opportunities that deliver lifelong benefits.

Stephen Twigg: I found myself in agreement with much of what the hon. Gentleman had to say in the earlier debate on schools, as I do with what he has just said. He makes a critical point, which enables me to bring my remarks to a close. Clearly, with 1 million young people unemployed, having high-quality apprenticeships
	is going to be a vital part of a strategy to address that problem, but it must not become simply a numbers game. I would like apprenticeships to become the gold standard of vocational education. I attended an Edge Foundation event a few weeks ago and made the point that it would be wonderful if the parents of a 17 or 18-year-old who gets an apprenticeship were as proud of their daughter or son getting that apprenticeship as they would have been of them getting into higher education. That should be what we aspire towards, and at the heart of that is quality, as the hon. Gentleman said.

Graham Stuart: In the light of the requirement to try to secure places, does the hon. Gentleman agree that apprenticeships need to be for a decent period and that an important part of making them work for employers—thus being provided and sustained in the long term—is that the rate of pay should not be too high? The aim should be to make the ticket at the end the valuable part; that is when the benefit comes. Keeping the rate of pay relatively low and ensuring that it lasts for a decent long time will mean that the apprenticeship will work for the company and that at the other end the young person will earn considerably more money.

Stephen Twigg: I might be told off by Madam Deputy Speaker, but let me say that the quality of the education and training elements of the apprenticeship are vital. What we must not do, however, is to allow apprenticeships to become a form of exploitation. A balance has to be struck. Clearly, an apprenticeship should be first and foremost about quality education and training, but with a decent amount of pay, too, for those who are apprentices.
	I am grateful for the opportunity to contribute to the debate. These are very important issues. I do not believe that any Opposition Member doubts the personal commitment of the Minister, particularly on apprenticeships. We have concerns that we have expressed previously about the impact of other changes—the abolition of the education maintenance allowance and the trebling of tuition fees—and we would be very concerned if there was any weakening of the apprenticeship brand. Let us perhaps forge a cross-party national consensus to the effect that we want apprenticeships to increase in number, but more importantly we want to see them as a high-quality gold standard for those young people who follow a vocational route of education.

John Hayes: The hon. Member for Liverpool, West Derby (Stephen Twigg) raised a number of points, which I shall try to address in my closing remarks. I would like to speak first to amendment (a) to Lords Amendment 29, under which the first as well as any subsequent regulations exempting certain providers from Ofsted inspection in particular circumstances would be subject to the affirmative procedure. The hon. Gentleman asked me particularly to address those matters.
	My hon. Friend the Minister of State, Department for Education, the hon. Member for Bognor Regis and Littlehampton (Mr Gibb) has already spoken about a related amendment to the schools inspection exemption. The same intentions lay behind the exemption for further education providers and our plan, in essence, is to exempt outstanding colleges. I will listen, however, to the points raised. I do not have a dogmatic view on this matter, and as we move to a lighter-touch inspection regime, it is important to do so with appropriate caution.
	I would like to deal with one particular concern. Where students feel that an outstanding institution is not maintaining high standards, Ofsted will take very seriously any comments students might make as part of the risk assessment, which could trigger an inspection. My hon. Friend the Minister spoke about the risk assessment process, and it is important that it is tied closely to the view of students about the quality of teaching and learning in an institution.
	I spoke to the National Union of Students today about representation on college governing bodies, which we discussed when we dealt with the amendments to which the hon. Member for Liverpool, West Derby also referred. As I described earlier, we view such representation as a baseline. Representation on governing bodies does not provide the whole answer for learner or staff engagement. Learners and staff should be engaged at a policy level in plotting the strategic direction of a college. As we move to a more freed-up system, so learner choice and learner judgment will play an increasingly critical role in how colleges evolve. I hear what the hon. Gentleman says about the process. We are moving ahead boldly, but cautiously. At this juncture, it is probably best for me to leave that there.
	Amendment (a) to Lords amendment 36 would require the chief executive of skills funding to make “best” efforts rather than “reasonable” efforts in respect of apprenticeships. Of course I understand the intention to strengthen the focus on the delivery of this important objective. It is crucial to maintain and, indeed, improve the quality of apprenticeships while we grow their number. When something grows rapidly, it obviously creates a pressure on quality. Inevitably, the momentum will lead to more employers and more providers becoming involved and more individuals becoming apprentices—including people who might not have done so if the system was smaller. I believe that places an extra responsibility on us to ensure that the integrity of the brand is retained by an appropriate emphasis on quality, and as I said on the Floor of the House a few days ago in a different debate on a different subject, we will do that. The hon. Member for Liverpool, West Derby is right to say that this amendment, and his argument about it, draws attention to the issue of quality. The debate in the other place and the discussions to which he referred—I pay tribute once again to Lord Layard and others—helped us to concentrate our thinking on maintaining and improving the quality of the apprenticeships offered.

Graham Stuart: Does my hon. Friend agree that the number of apprenticeships going on to level 3 is a big indicator of quality and that we want more apprentices getting to level 2 to go on to level 3? Has he given any more thought to providing a more flexible level 3 offer for 16 and 17-year-olds who often find that, if they want to go on to level 3 after completing level 2, the funding gets cut in the current system?

John Hayes: The hon. Member for Liverpool, West Derby spoke a little about the age spread of apprenticeships in arguing for his amendment. Although he did not deal particularly with the point that my hon. Friend the Member for Beverley and Holderness (Mr Stuart) just raised, this is not the first time that my hon. Friend has mentioned it. It is important to devise a system that maximises the prospect of progression, in the way that he describes.
	The good news is that the biggest proportion of growth in the numbers that were drawn to the House’s attention a week or so ago was in level 3 apprenticeships. I think that that rather frustrated the critics who had assumed that the biggest proportionate growth would be at level 2. In proportional terms, the number of level 3 apprenticeships has grown at the fastest rate over the last year. I can also inform my hon. Friend of a fact that has not been in the public domain until now: indications suggest that the length of apprenticeships among those aged over 25 is increasing. That is also rather counter-intuitive for those who listen to the critics from the bourgeois left, the glitterati and chatterati who look down their noses at practical learning in a way in which you and I do not, Mr Deputy Speaker.
	My hon. Friend was, however, right to draw our attention to other measures that we might take in respect of progression. I know that one of his suggestions is that we should look at ways of helping people to undertake parts of a level in which they were otherwise already competent. There may be ways in which we can adopt a more modular approach to progression. I do not intend to discuss that at length now, because it is not entirely pertinent to the amendment, but it is relevant to what has been said by my hon. Friend and by the hon. Member for Liverpool, West Derby, who also made a point about the age spread of apprenticeships.

Jim Shannon: In other regions of the United Kingdom, such as Northern Ireland, education, including further education, is devolved. In Northern Ireland it is possible to obtain gold-plated apprenticeships that can accompany the education and training that are also needed. Have the Government considered similar action to help apprentices to secure better final qualifications?

John Hayes: The hon. Gentleman has made a useful comment. The way in which apprenticeships are perceived, and the experience of the apprentices themselves, are critical to whether apprentices are likely to make progress. Those who have had a good experience of the early stages of apprenticeship may well progress to a higher level, perhaps in the companies that have taken them on, which will be good for both the business and the individual.
	Paragraphs 30 and 31 of Lord Leitch’s report, which was commissioned by the last Government, state:
	“Improving the skills of young people, while essential, cannot be the sole solution to achieving world class skills. Improvements in attainment of young people can only deliver a small part of what is necessary because they comprise a small proportion of the overall workforce. Demographic change means that there will be smaller numbers of young people flowing into the workforce towards 2020.
	More than 70 per cent of the 2020 working age population are already over the age of 16.”
	Lord Leitch concluded that unless we upskill and reskill the existing work force, we will never catch up with our competitors.
	The hon. Member for Liverpool, West Derby is right to say that we should not think in terms of two alternatives. This is not about providing a valued and valuable route to practical learning through apprenticeships for younger people but not doing so for people in their 20s or 30s
	who want to upskill or reskill, such as the level 3 apprentices whom I met recently at Jaguar Land Rover in Halewood, near Liverpool, not a million miles from the hon. Gentleman’s constituency. Both those things can be achieved through an apprenticeship offer of the right kind.

Stephen Twigg: I entirely agree that we are not talking about two alternatives, but does the Minister share my concern about the fact that, according to the IPPR report, there is a large growth in the number of apprenticeships for those over 25, a pretty large growth in the number for those aged 19 to 24, but a much smaller growth in the number for 16-to-18-year-olds?

John Hayes: I think that we need to calibrate the system to ensure that there is a good age spread. I probably should have emphasised to an even greater degree—you know what I am for understatement, Mr Deputy Speaker—the need to make growth sustainable. If it is to be sustainable, it will be necessary to address issues such as those that have been raised tonight. By “sustainable growth”, I mean growth that offers older learners the opportunities to upskill and progress that were mentioned by my hon. Friend the Member for Beverley and Holderness—opportunities to create a vocational pathway of the quality that we both seek, the “gold standard” for apprenticeships. I had used that term myself, and the hon. Member for Liverpool, West Derby may have read it, imbibed it subliminally and repeated it. I know that he would normally have attributed it; perhaps it was by accident that he did not.
	We also need to be constantly vigilant about the quality of the offer. Let me set out some of the things we are doing in that respect. I have made it very clear to the National Apprenticeship Service that poor provision should be eliminated. We have to be very tough on any provision reported to us that we investigate and find not to be of sufficient quality.

Neil Carmichael: Does my hon. Friend agree that one key measure of the success of apprenticeships—this certainly applies to levels 2 and 3, and is consistent with his views about economic growth, sustainability and so on—is what happens in manufacturing and engineering? Does he agree that all the measures that we should be thinking of in terms of developing that sector should be implemented?

John Hayes: Another bit of good news when we saw the figures from the statistical release was the substantial growth in manufacturing and engineering apprenticeships; the number of starts was 47,000, which was an increase of 20% on the 2009-10 figure. So we had very strong growth in the very apprenticeships that my hon. Friend rightly identifies as crucial to our future prospects. Interestingly, the figures clearly show that there is growth across the system. Again rather counter-intuitively from the perspective of the critics, there has been growth in sectors where employment more generally has either slowed or declined. So apprenticeships seem to be bucking the trend in areas such as manufacturing and engineering. Even in construction, where there has been a very sharp decline in employment, apprenticeship numbers have
	held up. That suggests that businesses are investing in training and in their future, and that apprenticeships are succeeding. This is a flagship policy, devised in opposition and delivered in government.

Bob Stewart: Has the Minister considered—I am sure that he has—the thought that a great number of high-quality individuals have had considerable technical training in the armed forces? Could they come in at level 2, with this possibly leading on to level 3? Is that part of the system he envisages?

John Hayes: This weekend, I was looking at a submission that suggested that we might ask the National Apprenticeship Service to look specifically at people who have left the armed forces. I am particularly concerned about those who have left the armed forces with a disability. One of the challenges that the previous Government faced and that we face too is in ensuring that the apprenticeship system is accessible to as many people as possible, and I do not think we do well enough by disabled potential apprentices. I asked, at the very early stages of my distinguished ministerial career, for the NAS to examine that area closely, but I want it to re-examine it. I particularly want the NAS to examine what we can do for disabled ex-servicemen.

Bob Stewart: rose—

John Hayes: I happily give way to my hon. Friend, who is a great expert on these things.

Bob Stewart: I hope that the Minister will forgive me, because he has almost made the point I was going to make, which is that we could involve disabled ex-servicemen as part of this system. That would be a superb way of helping them to get into decent employment in civilian life.

John Hayes: I am glad that I anticipated my hon. Friend’s point. Foresight is not essential for a Minister, but it is a great advantage, particularly when it can be displayed on the Floor of the House of Commons.
	My hon. Friend the Member for Stroud (Neil Carmichael) mentioned growth and others have talked about progression, so in dealing with the remark made by the hon. Member for Liverpool, West Derby about happiness, I wish to draw his attention to Yeats. I know that the hon. Member for Cardiff West (Kevin Brennan), the shadow Minister sitting next to him, is a fan of Yeats. Lord Layard did such good work on this particular amendment, so I shall cite the following from Yeats:
	“Happiness is neither virtue nor pleasure nor this thing nor that but simply growth, We are happy when we are growing.”
	When apprenticeships are growing, I am particularly happy because it is testament to the success of our policies.

Kevin Brennan: rose—

John Hayes: We are going to hear some more Yeats from the hon. Gentleman and I am happy to give way to him.

Kevin Brennan: He also said:
	“No likely end could bring them loss
	Or leave them happier than before.”
	We look forward to the Minister’s end this evening.

John Hayes: Perhaps we will see the end of this speech, but not the end of my career, not the end of this Government and not the end of my time here, which I see stretching a great long distance into the future.
	Let me return to the points made by the shadow Secretary of State for Education in respect of the Lords amendment and particularly the apprenticeship offer. He implored us to go further. Indeed, his amendment to the Lords amendment asks us to do so. He asks us to strengthen the offer, having acknowledged with typical generosity, the progress that we have made in this respect. I will again take seriously his remarks about how we market this. An important part of what we do with apprenticeships is selling the product. I have made it clear to the National Apprenticeship Service that its job is as a marketing and sales organisation. Its job is to get more companies to understand the value of apprenticeships, more individuals to understand the opportunities that they provide to them personally and more providers to rise to the challenge and to ensure that they are in the best place possible to deliver apprenticeships. As a result of his overtures, rather than accepting the amendment to the Lords amendment—he would hardly expect me to do that—I will look again at how we can market the renewed offer in the most effective way possible.

Neil Carmichael: On marketing apprenticeship schemes, does my hon. Friend agree that the key area that we should focus on is small and medium-sized enterprises, because they need to grasp the opportunities that apprenticeships can bring them and the apprentices?

John Hayes: Yes. In opposition, of course, it was our policy to offer a financial incentive to support SMEs, which we felt would have a real and perceived risk associated with taking on apprentices, through the means of some kind of payment. We were unable to do that because of the financial constraints that affect the whole Government, but we can make more progress in respect of bureaucracy. We need to make the system accessible, straightforward and simple. We need to get rid of the bureaucracy that has sometimes inhibited small businesses from engaging in the apprenticeship programme. Yes, we will go further, and spurred on by my hon. Friend’s enthusiasm, I will make further announcements on reductions in bureaucracy, specifically for SMEs. He is right that their engagement in apprenticeships is critical, not least because if we are to spread apprenticeships and seed them into every community, village and town, we cannot simply rely on the excellent apprenticeship schemes of major businesses, such as BT, BAM, BAE, the Royal Navy, Ford Motor Company, EDF, the Royal Air Force, Sellafield, Bentley Motors, Jaguar Land Rover, GE Aerospace, Caterpillar, Honda and others. We need to have apprenticeships in smaller businesses and micro-businesses, too, such as those in my constituency—in the small villages and towns, where if we were to ask young people in particular to get an apprenticeship, they could only do so locally, because of travel and accessibility issues.

Steve Rotheram: The Minister has just spoken about micro-businesses. MPs are almost micro-businesses. I would like to know how many MPs have put their money where their mouths are and taken on apprentices. I am one of them. Other Government and Opposition Members have taken on apprentices, but a vast number
	of MPs have not done so. If we all took on just one apprentice, we could create 650 apprentices in the House.

John Hayes: I have written to colleagues to that effect. I make that plea once again. The hon. Gentleman is right to offer that clarion call to Members of Parliament to take on apprentices. I have one in my office. I hope that the shadow Secretary of State is thinking about taking on an apprentice. I know that he will do so speedily, following the words that he has heard from the Dispatch Box today.
	The National Apprenticeship Service is already actively promoting apprenticeships with employers and ensuring that apprenticeships are highly prized by businesses and apprentices. It provides an online vacancy matching service for employers and prospective apprentices. It already has a dedicated employer-facing field force to recruit new employers in the way that I have described.
	We have had a short but helpful debate. We have heard an interesting appraisal of some of the issues already considered carefully in the House of Lords. I feel that the Government have illustrated that we listen and learn during the passage of legislation. Sometimes there are those who say that our scrutiny of legislation in this place and the other place is imperfect, but as a Conservative I take a conservative view of institutions. I am proud of this House and this Parliament. The Bill is a good example of Opposition and Government contributing to scrutiny in a way that has improved legislation. The other House and this House have interacted, both formally and informally, to make the Bill even better than it was when it started. It is important legislation which does important things in respect of apprenticeships, further education and, as we have already heard from the Minister of State, my hon. Friend the Member for Bognor Regis and Littlehampton, schools. The whole House can support the Bill with a degree of confidence in the scrutiny that it has received, and a degree of excitement about the difference that it will make to individuals and communities across our nation.
	Lords amendment 28 agreed to.
	Lords amendments 25 to 27 and 29 to 35 agreed to , with Commons financial privileges waived in respect of amendment 34 .
	After Clause 67

Securing the provision of apprenticeship training

Amendment (a) proposed to Lords amendment 36. —(Stephen Twigg.)
	Question put, That the amendment be made.
	The House divided:
	Ayes 191, Noes 285.

Question accordingly negatived.
	Lords amendment 36 agreed to , with Commons financial privileges waived. .
	Lords amendments 37 to 100 agreed to , with Commons financial privileges waived in respect of Lords amendments 37, 40, 41 and 43.

Business without Debate

DELEGATED LEGISLATION

Motion made, and Question put forthwith (Standing Order No. 118(6)),

Criminal Law

That the draft Al-Qaida (Asset Freezing) Regulations 2011, which were laid before this House on 11 October, be approved.—(Angela Watkinson.)
	Question agreed to.

BUSINESS OF THE HOUSE

Ordered,
	That, at the sitting on Tuesday 22 November, notwithstanding paragraph (2)(c)(i) of Standing Order No. 14 (Arrangement of public business), Opposition business may be proceeded with, though opposed, for three hours; proceedings shall then lapse if not previously disposed of; and Standing Order No. 41A (Deferred divisions) shall not apply.—(Mr Heath.)
	Ordered,
	That, at the sitting on Wednesday 23 November, paragraph (2) of Standing Order No. 31 (Questions on amendments) shall apply to the Motions in the name of Edward Miliband as if the day were an Opposition Day.—(Mr Heath.)

ADMINSTRATION

Ordered,
	That Geoffrey Clifton-Brown, Bob Russell and Mr Shailesh Vara be discharged from the Administration Committee and Graham Evans, Mark Hunter and Simon Kirby be added.—(Geoffrey Clifton-Brown , on behalf of the Committee of Selection .)

FINANCE AND SERVICES

Ordered,
	That Mr Brooks Newmark be discharged from the Finance and Services Committee and Mr Shailesh Vara be added.—(Geoffrey Clifton-Brown , on behalf of the Committee of Selection. )

TREASURY

Ordered,
	That Tom Blenkinsop and John Cryer be discharged from the Treasury Committee and Mr Pat McFadden and Teresa Pearce be added.—(Geoffrey Clifton-Brown , on behalf of the Committee of Selection .)

PETITIONS

Swansea Coastguard Station

Nick Smith (Blaenau Gwent) (Lab): I would like to present this petition, which I strongly support, to save Swansea coastguard station. It has been signed by more than 160 constituents of Blaenau Gwent and is supported by the hon. Member for Gower (Martin Caton).
	The petition states:
	The Petition of residents of the constituency of Blaenau Gwent,
	Declares that there is a fierce reaction to the wholly unexpected proposed closure of the Swansea Coastguard Station, which will affect 28 staff, and declares that the Petitioners fear that lives will be put at risk if the proposal goes ahead, as the Petitioners are unconvinced that new technology would be an adequate substitute for close proximity between the coastguard and other emergency services.
	The Petitioners therefore request that the House of Commons urges the Secretary of State for Transport to reconsider the decision to close Swansea Coastguard Station and ensure that a coastguard station remains at Swansea.
	And the Petitioners remain, etc.
	[P000975]

Legal Aid for Gypsies and Travellers

Jeremy Corbyn (Islington North) (Lab): I am very pleased to present a petition that is strongly supported by my hon. Friend the Member for Hammersmith (Mr Slaughter). He wanted to present it, but I am doing it on his behalf and on behalf of the Community Law Partnership. The petition concerns the Legal Aid, Sentencing and Punishment of Offenders Bill and complements a similar petition of 1,000 signatures that was delivered to the Prime Minister last week. We believe that the Bill is having a disastrous effect on the provision of advice and representation to Gypsies and Travellers on accommodation issues. The petition has my full support and has been signed by 25 members of the Community Law Partnership.
	The petition states:
	The Petition of the Community Law Partnership on behalf of Gypsies and Travellers,
	Declares that the Legal Aid, Sentencing and Punishment of Offenders Bill, if brought into force, will have disastrous effects on the provision of advice and representation to Gypsies and Travellers on accommodation issues. Gypsies and Travellers are one of the most disadvantaged groups in the United Kingdom. The bill denies them access to the legal advice and assistance which is available to any other group. It is due to the failures of successive central and local Governments to ensure adequate site provision that some 25% of the Gypsy and Traveller population who live in caravans are on unauthorised encampments and unauthorised developments. This is through no fault of their own.
	The Petitioners therefore request that the House of Commons urges the Government to ensure that Legal Aid in the Legal Aid, Sentencing and Punishment of Offenders Bill is available for Gypsies and Travellers to defend evictions from unauthorised encampments and to be advised and represented in the County Court and High Court planning matters.
	And the Petitioners remain, etc.
	[P000982]

GREEN INVESTMENT BANK (LEEDS)

Motion made, and Question proposed, That this House do now adjourn.—(Angela Watkinson.)

Greg Mulholland: I am delighted to have secured this debate on one of the Government’s flagship commitments: the establishment of the green investment bank. I shall focus in particular on the Leeds city region bid to host the bank’s headquarters.
	As you are in the Chair, Mr Deputy Speaker, it would be remiss of me not to point out that this coming Saturday the Leeds city region’s Elland Road ground will host the final of the four nations rugby league tournament, following the sensational performance by the England team against New Zealand in Hull in Yorkshire and the Humber, and I want to put it on the record that the Leeds Rhino players made a wonderful contribution to that victory.
	The Leeds city region has an extremely strong case to be the home of the GIB. It is being established to provide an infrastructure for a green economy with sustainable long-term growth. That will involve unprecedented investment in green economics. Operating at arm’s length from the Government, it will bring together cross-sector financial, economic and environmental expertise with private capital and investment. The GIB is one of the most exciting policy ideas in the coalition agreement, but it must deliver on the bold vision laid out for it, including the task to innovate and to challenge—to do things differently.
	The GIB is a big opportunity for the Leeds city region, and for Yorkshire and the Humber as a whole. It presents an opportunity to showcase the unique mix of expertise, infrastructure and communication links in the region. It is also an opportunity for the Government to show they are serious about innovating, regenerating and doing things differently.
	The Deputy Prime Minister has said:
	“For years, our prosperity has been pinned on financial wizardry in London’s square mile, with other sectors and other regions left behind. That imbalance left us hugely exposed when the banking crisis hit...It’s time to correct that imbalance. We need to spread growth across the whole country, and across all sectors.”
	If that does not suggest that the GIB should be located not only outside London, but in a region where there is real power to harness, innovate and regenerate, I do not know what does.

Julian Smith: I congratulate my hon. Friend on securing the debate, and am delighted that he is talking about Yorkshire as a whole, rather than just Leeds, because there are many examples of community-led energy projects in my constituency, and throughout our region we have a phenomenal track record of delivering on green projects and investment.

Greg Mulholland: I thank my hon. Friend for his comments, and I also thank the other Members representing constituencies in the region who are present. I shall be very happy to take interventions from any of them, in order to show that there is cross-party support on this issue, but I should also make it clear that I will only take
	interventions in support of the Leeds city region bid. Those supporting other regions and bids can get their own debate, just as I have this evening.

Simon Hughes: rose—

Greg Mulholland: I must ask my right hon. Friend whether he wishes to comment in support of the Leeds bid.

Simon Hughes: Trust me.

Greg Mulholland: As it is my right hon. Friend who seeks to intervene, I shall give way.

Simon Hughes: As a London MP, I am very clear that the GIB should be located not in London, but in one of the other parts of the country. I hope my hon. Friend regards that as a helpful comment, although he must realise that I cannot be explicit as there are also other bids. It is definitely right that the GIB should not be located in London, however.

Greg Mulholland: That is very helpful, and I thank my right hon. Friend very warmly for his intervention. Whether it is as popular with his constituents as it will be with mine, I do not know, but I thank him for it and agree with his sentiment.
	The vision for the green investment bank is admirable and exciting, and the case for its location in Leeds is similarly exciting and innovative. They seem to be an excellent match. The Leeds city region already has a mission to become a world-class, low-carbon economy, and at the same time, as we know, the Government have said that they want to be the greenest Government ever.
	As my hon. Friend the Member for Skipton and Ripon (Julian Smith) said, the Leeds city region is wide and diverse, covering the whole of west Yorkshire, parts of neighbouring north and south Yorkshire and the 10 local authority districts of Barnsley, Bradford, Calderdale, Craven, Harrogate, Kirklees, Leeds, Selby, Wakefield, and York. With close to 3 million people, a diverse resident work force of 1.5 million, 106,000 businesses and an economy worth £53 billion per year, it is a region to be taken seriously.

Jason McCartney: I, too, congratulate my hon. Friend on securing this very important debate. He mentions Kirklees, my local council, and I shall add some more statistics from our part of the world. David Brown engineering in Lockwood, Huddersfield, has just received money from the regional growth fund for its offshore wind turbine gear technology; the transition town movement in the valleys of my constituency, Holmfirth, Slaithwaite and Marsden, is up and running; and on a more regional basis, in west Yorkshire and beyond, there is also CO2Sense Yorkshire, an organisation leading the charge in Yorkshire for carbon capture and storage technology. Does he agree that it all adds up to a fantastic case for Yorkshire to secure the green investment bank?

Greg Mulholland: My hon. Friend lays out a key part of my speech: so much of what the green investment bank is determined to do is already happening in the Leeds city region. He also demonstrates powerfully that the bid is supported by the public sector, including those 10 local authorities, the private sector, the third sector and, indeed, by MPs from all over the city and Yorkshire and Humber regions.

Fabian Hamilton: I congratulate my hon. Friend and constituency neighbour on securing this debate. Does he accept and acknowledge that, under the control of all parties, Leeds city council has played a crucial role in pioneering environmental schemes over many years? Does he acknowledge also the efforts of a former Member, Paul Truswell, who was the first chair of the council’s environmental committee and undertook pioneering work way back in the 1980s? Leeds has a very good record, and it is one of the reasons why the bank should be situated there.

Greg Mulholland: I thank the hon. Gentleman, my constituency neighbour, for that contribution. He correctly notes that wonderful and groundbreaking work has taken place at Leeds city council, and, as he knows, I am the green champion on Team Leeds, with which Leeds MPs specifically are involved. It is an initiative of the Leeds, North Yorkshire and York chamber of commerce, and I am happy to carry on that work and to do what I can to voice it on behalf of Leeds and all those other areas.
	The Leeds city region has three fundamentally important things to offer as the location for the green investment bank: first, its location; secondly, its incredible talent in finance, business and the green economy; and, thirdly, its excellent value in allowing for the bank’s affordable establishment as quickly as possible.

John Healey: Will the hon. Gentleman give way?

Greg Mulholland: I said that I would take contributions from all hon. Members from the region. The right hon. Gentleman’s constituency is on its southern tip, so as long as he is supportive I will certainly take an intervention from him.

John Healey: I thank the hon. Gentleman for giving way and congratulate him on securing the debate. I wanted to add a fourth and a fifth point. Fourthly, Leeds is an established financial services centre; and, fifthly, our region, the Yorkshire region, is ahead of many others when it comes to environmental technologies and industries. Does he accept that even in south Yorkshire we recognise the case for Leeds to be the centre for the green investment bank? It has—unusually, from south Yorkshire—our full support for that move.

Greg Mulholland: I thank the right hon. Gentleman very warmly for that contribution. When the Leeds city region team established its bid, one crucial thing was to see whether Sheffield and south Yorkshire would come on board in support. That support is very important, and I hope that the Minister listened to the right hon. Gentleman’s contribution. Of course, having the green
	investment bank based in Leeds would, indeed, be a bonus for south Yorkshire, as it would for the whole region.
	We have excellent transport links in the Leeds city region to the north-west, to Scotland, to the north-east and, of course, to London. However, one thing that people perhaps do not understand is that the Leeds city region is the largest manufacturing centre in the United Kingdom. I do not know whether the Minister is aware of that. Crucially, locating the green investment bank in the Leeds city region would place it closest to some of the UK’s most exciting low-carbon sustainable investment opportunities.
	We already have a track record of such projects, including electric transport infrastructure, offshore energy, carbon capture and storage, biomass and renewable energy production. As has already been said, there is also a real commitment to green ideals in the Leeds city region. That comes from the public sector, but it also comes from the private and the third sectors. In April this year, the Leeds city region published a business survey which showed that, in respect of environmental innovation, 47% of businesses in the region reported that they had already taken significant action to reduce carbon dioxide emissions. That demonstrates that we are at the forefront of the transition to a low-carbon economy.
	As I said to the hon. Member for Colne Valley (Jason McCartney), so much that the green investment bank wants to do and wants to invest in is already happening in the Leeds city region. We have to accept that decarbonising the industrial and manufacturing sectors will be one of the green investment bank’s biggest challenges. Our industrial past has left us with a huge challenge. Yorkshire and Humber as a whole is home to the UK’s largest cluster of industrial CO2 emissions, equivalent to half the domestic emissions of the UK. Our three coal-fired power stations generate 17% of the UK’s energy alone. Drax power station in the region is already co-firing with biomass in a bid to achieve its aim to generate 12.5% of its electricity in that way. That makes it the largest project of its kind in the world. It has plans for three new dedicated biomass-fired plants, which would together add a further 900 MW to the UK’s energy generation.
	The Leeds city region is also at the forefront of the development of carbon capture and storage. The project under construction at Ferrybridge will provide the technical evidence needed to underpin large-scale demonstration plants across Europe. The Leeds city region is also leading the way on the delivery of domestic retrofit. Since the feed-in tariff subsidy began, Leeds has had the second biggest take-up of microgeneration technologies in the UK. It is second only—this will certainly please the right hon. Member for Wentworth and Dearne (John Healey)—to another of Yorkshire’s economic powerhouses: Sheffield.
	My hon. Friend the Member for Colne Valley mentioned Kirklees. The Kirklees warm zone scheme is viewed as national best practice in funding and delivering domestic retrofit, and it has reduced fuel poverty in some of the most deprived wards in the country. Building on that experience, the Leeds city region is now establishing a city-wide retrofit programme and is advising the Department of Energy and Climate Change on the deployment of the green deal. And that is just in the Leeds City Region.

Hilary Benn: I join others in congratulating the hon. Gentleman on securing the debate. He is making a very powerful case for the Leeds city region bid. As he is talking about homes, does he agree that it is important to have innovation in housing if we are to tackle the CO2 challenge? For example, the pioneering greenhouse project in Beeston in my constituency has taken a derelict building and turned it into flats. At the last count, that project had won 27 or 28 awards and is producing heat from ground source heat pumps and recycling water. It is a living, breathing example of what can be done and a good illustration of the kind of innovation that can be found in the region. That is precisely why the bid from the Leeds city region should be successful.

Greg Mulholland: I thank the right hon. Gentleman, my other neighbour, for his support in this campaign. That is a strikingly innovative project. While we have the Minister here, we should suggest that he visit projects of that nature; the only thing is that he and his team will probably need about a week to see many of the wonderful things that are going on in the Leeds city region.
	A little further afield, in East Yorkshire, we have offshore wind on the Humber—a project that has been developed with significant expertise from the Leeds city region across the financial, legal, manufacturing and engineering sectors. The region’s traditional sectors, such as manufacturing, will develop the low-carbon technologies of tomorrow, as in the case of David Brown, a company mentioned by the hon. Member for Colne Valley.
	That leads to the second reason why Leeds city region should get the green investment bank: the incredible talent that we have. As the right hon. Member for Wentworth and Dearne has already said—he rather stole my thunder, but it needs to be repeated again and again, so I am happy that he has done so—Leeds is the leading UK centre for financial services outside London, with 120,000 people working in the sector and over 30 national and international banks based in the city. I do not know whether the Minister is aware of this, but Leeds city region has the biggest financial sector outside London—bigger than any of the competitors currently bidding for the location of the green investment bank.

David Ward: As a Bradford MP, it pains me somewhat to say too much in favour of Leeds, but I hope that the Minister is catching the drift of this debate. We are aware of the rebalancing strategy from the south to the north regarding finance and manufacturing, but it is crucial to rebalance within regions too. The fact that so many MPs are here from so many parts of the region is testament to our belief that such a move would be good for the whole of the region, not just good for Leeds.

Greg Mulholland: I thank my hon. Friend. This debate does show the strength of support for the bid from all round the Leeds city region and, indeed, the Yorkshire and Humber region.
	Let me say this one more time, because I have heard doubts cast on it: Leeds is the second biggest financial centre in the country—not Bristol and not Edinburgh. I will give some figures. Financial advisers in the Leeds
	city region were responsible for almost 200 deals in 2010, worth £10 billion to the economy. If that is not music to Ministers’ ears, I do not know what is.

Jason McCartney: I praise my hon. Friend for the positivity of his arguments. He is laying out a compelling case for the bank’s coming to Yorkshire. Does he agree that another big element is the certainty, unlike in some other potential locations, that there will not be a referendum on independence in Yorkshire—no matter how much I would like one, as a born Yorkshireman? We do not want to be negative about anywhere else, but Yorkshire does not have that uncertainty about potential referendums on independence.

Greg Mulholland: My hon. Friend makes a very important point. The show of unified support for this bid from all political parties is vital, and I am afraid that the political situation is different for some of the bids to which he refers.
	In 2009, there was a 32% rise in the value of deals in the financial district in Leeds, despite the value of deals in the UK falling by 16% in the same period. Three banks and four building societies have already chosen to locate their headquarters in the Leeds city region, including the headquarters of the UK’s largest financial insurance provider and its investment function, responsible for £75 billion-worth of assets, as well as 10 private equity firms, including the UK’s leading mid-market equity house. We do not just have a big financial sector; we also have the right skills set to support the green investment bank’s products. The sector has direct and recent experience in establishing new financial institutions, with the financial service sector in the Leeds city region having been involved in the delivery of 19 of the past 21 building society mergers.

Nigel Adams: I, too, congratulate my hon. Friend on securing this Adjournment debate. Does he have any idea of the number of jobs that would be created in Yorkshire and in Leeds in particular if the green investment bank was won by the Leeds bid?

Greg Mulholland: Of course, the point of the green investment bank is not to deliver jobs itself—although a few hundred people will work in and around it—but to bring in investment through projects and the knock-on effects. Those projects will be not only in Yorkshire and the Humber, but all around the country. The Minister might be able to give some idea of the Government’s vision for delivering growth for the economy and employment all around the UK, delivered, crucially, from the Leeds city region.

Julian Smith: I refer back to the hon. Gentleman’s comments on the type of financial services that Leeds possesses. It is the home of mutual organisations and of a different kind of financial services than is seen in the City of London. That character, which he painted so eloquently, has to be part of the pitch for Leeds.

Greg Mulholland: That is an important point and it is right of the hon. Gentleman to reiterate it. We must all keep doing so again and again to Ministers. I apologise to the Minister for taking so many interventions. It is
	rather nice to have so many positive ones. It will, however, take me a little longer to make my contribution than I had originally thought because of that.
	As well as the financial expertise and talent in the region, we have the professional and business services that would be integral to the success of any new banking institution. Five of the UK’s largest law firms and 150 accounting firms, including nine of the 10 largest UK practices, are based in the Leeds city region. Crucially, the professional and business services sector in the region has a strong record in supporting the delivery of low-carbon schemes. It is in demand for doing so across the UK, with a number of projects having been advised and structured by businesses from the Leeds city region. One example—and we will provide more to the Minister—which is from the other side of the Pennines, is the UK’s largest wind farm on Scout moor in Manchester. Top legal teams based in Leeds, such as Addleshaw Goddard, regularly advise on international green projects, such as the latest power project in Saudi Arabia and a solar project in South Korea. This expertise and talent is already delivering what the green investment bank wants to do not just in the UK, but around the world.
	Finally on talent, the region also has the necessary environmental expertise. The region’s carbon capture and storage programme has been led by CO2Sense. That is one of a number of Leeds-based expert organisations that drive innovation-led low-carbon projects in the Leeds city region and that would support the bank in its activities. It has been delivering the objectives of the green investment bank in the region for the past four years. It has invested in low-carbon infrastructure projects across the region.
	We also have the Centre for Low Carbon Futures, which is a partnership of universities that has a track record in providing expert advice to the Department of Energy and Climate Change. It includes the centre for climate change economics and policy at the university of Leeds. We also have Science City York, which is a partnership company of academics and the private and public sectors that has expertise in bio-renewables. It has directly helped to establish more than 100 new technology companies.

Fabian Hamilton: Will the hon. Gentleman give way again?

Greg Mulholland: I am able to be generous because of the time.

Fabian Hamilton: Given all that the hon. Gentleman has said, it is no surprise that one of the most innovative low-carbon, recycled fuel power stations was opened on the border between our two constituencies at Buslingthorpe Green just a month ago. I had the privilege to open it with the lord mayor of Leeds. It generates 2 MWe and is run on recycled cooking oil. I hope the hon. Gentleman would agree that that is exactly the kind of project that the green investment bank could encourage throughout the country. Leeds has shown that it has the expertise to have the bank right in the heart of the city and the region. Does he agree that that is the sort of project that needs support?

Greg Mulholland: Absolutely, and if the hon. Gentleman invites me there as part of “Team Leeds”, I will be delighted to get my hard hat on and come and see it for myself.
	Projects up and down the country are already being advised and structured by companies from the Leeds city region. The only biomethane project in the United Kingdom to be completed, in Didcot, was assisted by advice and structuring from the region. As the Minister has heard clearly—I hope the message has got out—the Leeds city region is involved in developing economically sustainable businesses in the green and low-carbon sectors not just in the region, or in the United Kingdom, but around the world.
	The third and final key reason why the green investment bank should be based in the Leeds city region is one that I know is music to any Minister’s ears in the current economic climate. The region offers outstanding value for money, through available and affordable office space and competitive staffing, recruitment and location costs. It has a portfolio of high-quality, low-carbon buildings that could house the bank at excellent commercial value. Leeds has offered the best value for money office space among the major European business cities for the past three years, according to Cushman and Wakefield’s annual rankings, offering more competitive value than Bristol, Edinburgh and Manchester, the other cities bidding for the bank. The region also has more buildings that are rated excellent by the Building Research Establishment environmental assessment method—the world’s leading design and assessment method for sustainable buildings—than any of the other cities bidding.
	Through existing organisations, the Leeds city region also already has the skill sets required to assess opportunities, make funding recommendations, save time and money on set-up costs and get the bank up and running as quickly as possible.
	I want this to be a positive speech, but I have to put it on record that I, and other Members from the region, find it very frustrating that doubts have somehow been cast on some of those incredibly strong credentials of the Leeds city region. There are some strange misunderstandings, considering the very clear facts and the hugely strong case for the region. Some of us may feel that it is another example of something of a blind spot in parts of Westminster and Whitehall when it comes to our region. Perhaps we need to shout a little louder, and we shall. I hope that today, I have put the case forward and left little doubt in the minds of Ministers and others about the incredibly strong case for the region.
	The Leeds city region and its surroundings have the specialist knowledge, skills, location and professional supply chain needed to support the green investment bank and its customers. As the House has heard, the potential for green investment in the Yorkshire and Humber region is huge, and the opportunity for the green investment bank in the Leeds city region is enormous.
	The Minister knows that the green investment bank is hugely important for the UK, as a global leader on the environment, and the Leeds city region has the formula to make the bank deliver. As I said at the outset, the bank is an exciting and innovative vision, which I support, as I am sure do all right hon. and hon. Members who are in their places. We believe that it is an excellent fit with the innovation, expertise and infrastructure that already exists in the Leeds city region.
	I know that the Government are serious about the green investment bank and the vision of what it can deliver towards a sustainable, greener economy. The message that I want to leave with the Minister, and with the team who will award a city the green investment bank, is that we in the Leeds city region are just as serious. We are serious not just about the bank being in Leeds, but about its succeeding, excelling and helping the UK to that more sustainable, greener economy.

Mark Prisk: I begin by adding my congratulations to my hon. Friend the Member for Leeds North West (Greg Mulholland) on not only securing the debate but leading a remarkable song of harmony. He talked about music to my ears, and I must say—I say it with due care, as you are a professional Lancastrian, Mr Deputy Speaker—that I have not seen quite so many Yorkshiremen together and singing in such harmony, not just from west and north but from the south part of Yorkshire as well. It is very nice to see and hear. I hope that that same harmony can be maintained as proposals are put forward.
	If I may say, my hon. Friend put his case very effectively. I might also congratulate him on his genius of having 57 different points as to why we should have the green investment bank in Leeds but under only three headings. That was a masterful performance.
	Let me say from the start as someone who regularly goes to Leeds that I totally share the view that it is a first-class city with many advantages and a strong commitment to going green in our economy. I thank, for example, the local enterprise partnership and its partners for the comprehensive business case they have submitted for locating the green investment bank in the city. I was lucky enough to be in Leeds just a few weeks ago at the unveiling of the Yorkshire Post business club, when I heard first hand just how much support there is for this institution to be located in the city.
	The green investment bank is a key component of this Government’s commitment to a transition to a sustainable low-carbon economy, which will complement other green policies, which I will touch on briefly later, to drive forward growth in the sector, which by 2009-10 was already worth some £116 billion.
	As we have heard from several hon. Members, Leeds has a long and illustrious industrial history, often at the forefront of innovation. It is one of the UK’s largest manufacturing bases. We have heard that it is home to many international businesses. Leeds has also been able to make that difficult transition from industrial powerhouse to a thriving hub for financial services. It is true that outside the City of London, it is the largest financial centre in the UK.
	As several hon. Members have pointed out, Leeds has a number of other important emerging strengths, including environmental sciences, bioscience, and even digital and creative industries. Even in these challenging times, growth can clearly be seen in the increase in exports not just from Leeds, but from the Yorkshire and Humber region, which grew to £3.8 billion in the first quarter of this year compared with last year. When I go to the city, I see a sense of confidence and optimism when I look, for example, at the investment of £350 million in the Trinity retail and leisure development, or at the £60 million investment in Leeds arena.
	As several hon. Members have said, the green economy has become increasingly important, and the Leeds city region demonstrates its focus on a sustainable economy in several ways. I had the pleasure of attending the official launch of the Aire valley enterprise zone. Its focus is on low-carbon industries and it expects to create up to 9,500 new jobs by 2025, and to add something in the region of £550 million of economic output to the city region. As my hon. Friend the hon. Member for Leeds North West mentioned, the enterprise zone in the nearby Humber region should generate nearly 5,000 jobs by 2015, particularly through its focus on offshore wind manufacturing.
	When I went to the city, I was also struck—several right hon. and hon. Members mentioned this—that there is a genuine local commitment to going green in local initiatives, such as the better business environment forum or the Leeds climate change charter. Leeds is one of only four cities in the UK that is designated as an environment city. Local people recently celebrated the European year of volunteering environmental theme with projects including river cleaning, action mornings to maintain the Gledhow valley woods—I am getting a generous nod so I trust my pronunciation was correct—and a comprehensive scheme of planting bulbs and flowers in public places. That happens in other parts of the world regularly, but it is nevertheless part of that voluntary wish to recognise the value of a genuine sustainable community and economy.
	I appreciate that there is a genuine commitment to a green, low-carbon future right across Leeds. Nationally, the Government are taking real action to try to put the whole economy on that path. Over the summer, the Department for Business, Innovation and Skills, the Department for Environment, Food and Rural Affairs and the Department of Energy and Climate Change published plans that map out the Government’s approach to building the green economy and show what that means in practice for business. The plans set out the range of policies we are using to support the transition to a green economy and the opportunities that we have created, but also the implications for some of those traditional businesses, which, as various right hon. and hon. Members have mentioned, will need to change how they operate to develop in future.
	We understand that to invest the substantial resources required in this area, business needs to be certain that the low-carbon sector is not a passing fad, as some sceptics might believe. That is why we are seeking to provide certainty and why, for example, we are committed by law to providing a 50% reduction in carbon emissions by 2025. We have launched the world’s first incentive scheme for renewable heat, which should increase investment in green-heat technologies by £7.5 billion by 2020. We have also announced the green deal, under which householders, businesses and landlords will be able to improve the energy efficiency of their homes and buildings at no up-front cost. We have also introduced a carbon price floor, proposals on electricity market reform and a range of initiatives to encourage the roll-out of low-carbon vehicles.
	To that end, good progress is being made on the green investment bank. It will be the first of its kind in the world, which is why it is one of this Government’s first priorities. Capitalised with £3 billion, the green investment bank will complement other green policies
	to help accelerate the leveraging in of additional private capital. The key is that the green investment bank must be a new but enduring institution, rather than a series of Government interventions, and an institution that addresses the areas of under-investment that have persisted in spite of the other measures that I have mentioned. Our green objectives are ambitious, and to achieve them we need tailored and targeted financial intervention to overcome under-investment in those key areas. The green investment bank will work towards the double bottom line of both achieving significant green impact and making financial returns.
	As we have seen from this and other debates in the House, there is a real interest in the operation of the green investment bank and how it will be established, so let me turn to that. To assist us, we have appointed an advisory group, led by Sir Adrian Montague, to advise on a range of issues, including not just the institution’s strategic priorities, but the conditions and the market in which it will operate. The priorities will be decided by the Secretary of State and reviewed regularly by Ministers and the institution’s corporate board.
	The question at the heart of this debate is the bank’s location. The location is critical to the bank’s success, and although it will not be a large institution, it is clear that people already see it as a valuable organisation—an asset, as I think one hon. Member described it—to wherever it is located. I can tell the House that we have received applications from 20 cities and towns, including Leeds. They have indicated that they would like to be considered as the location of the green investment bank. We intend to set out the details of the criteria and
	the process for determining the location of the green investment bank before Christmas, in just a few weeks, with a view to making the final decision in 2012. Our proposals for the green investment bank will need to be approved by the European Commission before we can establish it as a fully independent financial institution. We expect approval by mid-2013. In the interim, to accelerate our transition to a green economy, the Government will begin making early investments in green infrastructure from April 2012.
	We are committed to taking action now to enable the transition to a green and growing economy, and we welcome Leeds’ active, positive and energetic contribution to this debate. We will continue to build on the progress that we have made, which is why we welcome the support from all the main political parties for the principle of an enduring and independent institution that will help to set the UK firmly on its course towards a green and growing economy.
	To summarise briefly, I congratulate my hon. Friend the Member for Leeds North West on raising this important issue and emphasise that no decisions have yet been made—if that is an assurance to him—on the location of the bank. We will ensure a fair and transparent process when we decide on the location. All interested parties will be given an equal opportunity to submit an expression of interest, so that due consideration can be given to all submissions to ensure a full and equitable process.
	Question put and agreed to.
	House adjourned.